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Export of agricultural products - income taxable?

Ashraf Ali M (Director) (26 Points)

05 March 2015

I am engaged in export of Agricultural product (Fresh Coconut). Please clarify whether the income generated is taxable or is there any exemptions related to that.

Thanking you,

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7 Replies

Swami Ayyappa Nuli (TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER) (1372 Points)
Replied 05 March 2015

Agriculture Income whether sale is Domestic or Export, if such agriculture produce is from Agriculture Land situated in Indai, It is Agriculture Income and hence exempt u/s.10(1).

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Ashraf Ali M (Director) (26 Points)
Replied 06 March 2015

Thanks for the reply, I missed to mention in our case, we do not own any land, we buy Fresh Coconuts from farmers and export them. So, pls. clarify if this income is taxable, if not how is it exempted. Thanks again.

Saurabh806 (Kanpur) (112 Points)
Replied 06 March 2015

In the case of agricultural operations it isn’t necessary that the person conducting the operations be the owner of the land. He could be just a tenant or a sub-tenant. In other words, all tillers of land are agriculturists and enjoy exemption from tax. In some cases, further processes may be necessary to make a marketable commodity out of agricultural produce. The sales proceeds in such cases are considered agricultural income even though the producer’s final objective is to sell his products.

:Agriculture income is exempt under the Indian Income Tax Act. This means that income earned from agricultural operations is not taxed. The reason for exemption of agriculture income from Central Taxation is that the Constitution gives exclusive power to make laws with respect to taxes on agricultural income to the State Legislature. However while computing tax on non-agricultural income agricultural income is also taken into consideration

gbalakrishnan (owner) (1373 Points)
Replied 06 March 2015

No income tax to you

ajit hegde (article) (82 Points)
Replied 06 March 2015

Since you are trading (i.e., buying and selling) it will not be considered as agricultural income. Hence, taxable. However, there are several incentives ranging from 5% to 10% on the value of exports which you can claim. You can avail those incentives available for agricultural products exported

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Swamy (Article) (116 Points)
Replied 06 March 2015

It's a trading income not a income from. Agriculture

rahul (Article) (30 Points)
Replied 05 February 2016

Dear Sir,

Please advice if I am buying raw agri product from farmer and selling to any Indian Co or Exporting it as it is without making any change. Will it be treaded as agri income and can I get any incentive for exporting same.

Thanks & Regards