Agricultural income tax applicability

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This discussion clarifies the tax implications for individuals with agricultural income alongside non-agricultural earnings. Generally, if your total agricultural income is below the exemption limit (typically £5,000), filing a tax return isn't mandatory, even if you have other income. However, if your agricultural income exceeds this threshold, or if your non-agricultural income is substantial, filing an Income Tax Return (ITR) may be required, with the specific form depending on the source of your non-agricultural income.

ntc pioneer

ntc pioneer (Querist)

14 July 2023 What are the tax implications in the following cases?

1) agriculture income 4000 p.a and non agriculture income 100000 p.a

2) agriculture income 6000 p.a and non agriculture income 100000 p.a

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

14 July 2023 In both the cases no tax liability, as both of them as below exemption limit.

ntc pioneer

ntc pioneer (Querist)

14 July 2023 Thanks.But is ITR required to be filed in the second scenario

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

14 July 2023 No. Not mandatory.

ntc pioneer

ntc pioneer (Querist)

14 July 2023 What if the agriculture income exceeds 5000 p.abut there is no other source of income,then in such a case should one file an ITR ? and which ITR form should one use if the agricultural income is 4000 p.a and non agriculture income 400000 p a

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

14 July 2023 1. No. Not mandatory.
2. Specify head for non-agricultural income of 4 lakhs.

ntc pioneer

ntc pioneer (Querist)

14 July 2023 Non agriculture income from deposits of 400000 pa

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

14 July 2023 If nonagricultural income is from business head then file ITR 3.

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