Agricultural income

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Income earned by an individual for performing labour services on a farm, such as digging, seeding, and watering, is not considered agricultural income. Instead, it is classified as 'Income from Salary' because the payment is for the individual's labour, not for agricultural produce or land rental. This distinction is crucial for tax purposes.

Rashid Mp

Rashid Mp (Querist)

26 June 2020 A man is working in a farm like digging, seeding, watering etc. and he is receiving wages.Is his income is agricultural Income? Or Under which head his income is included

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

26 June 2020 It's not agricultural income. His income to be included under salary head.

Message likes : 1 times

Punit Gupta

Punit Gupta (Expert)

27 June 2020 Agreed with Mr R Seetharaman, amount being received is to be considered as Wages and included under Income from Salary head.

Rashid Mp

Rashid Mp (Querist)

28 June 2020 Tnx for answering , it was useful

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

28 June 2020 Welcome.......................

Rashid Mp

Rashid Mp (Querist)

30 June 2020 Sir can you explain the reason. The man is doing primary or subsequent activity in the land, why not it is treated as income from land through agricultural operations

Punit Gupta

Punit Gupta (Expert)

30 June 2020 The man in question is being paid wages against his labour services being rendered to the agricultural business. Here the Cause for Payment is Rendering Labour services, and for agri income, the sale of agri produce or rent received from renting agri land is to be present.
So this is a normal income from wages/salary.

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