Agriculture income

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 October 2013 Dear Sir,

I am land owner of 10 acres situated in 7 k.m from Saklespur Municipality in Karnataka State. I am a regular assessee. I have filed my Income Tax return for the AY 2013-2014 (31-03-2013) admitting taxable income of rental and bank interest income being Rs.3,10,000/- and net agricultural income Rs.1,60,000/- totalling Rs.4,70,000/-. The tax computed adding agri income for rate purpose was Rs.11,330/- and it was paid after deduction of TDS.

NOW FOR THE CURRENT ASSESSMENT YEAR 2014-2015, ONE OF MY FRIENDS SAYS THE AGRI-LAND. i OWNED, FALLS WITHIN THE MUNICIPAL LIMIT AND THE AGRI INCOME OF THAT LAND SHALL BE LIABLE TO TAX AS OTHER INCOME AS PER THE NEW SECTION 2(1A)OF THE INCOME TAX ACT WILL YOU PLEASE ADVISE ME.

wHETHER MY FRIENDS WORD IS RIGHT. SHALL i HAVE TO PAY TAX EVEN FOR MY AGRI-INCOME WITHOUT AGRI RATE AS CLAIMED LAST ASSESSMENT YEAR 2013-2014

REGARDS,
N. SIDDALINGIAH,
BYAKARAVALLI VILLAGE
KARNATAKA STATE

Nikhil Kaushik

Nikhil Kaushik (Expert)
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16 October 2013 By your own submission, the land is within 8 km of the municipality limit. However, what is relevant here is the population of the municipality. If the population of Saklespur municipality is less than 10 lakh then your income from such land shall continue to be exempt. However, if the population is more than 10 lakh, then your agriculture income shall be taxable.

If I am not wrong Sakleshpur is a Town Municipal Council with population less than 1 lakh. Therefore you may continue claiming exemption for the agriculture income.

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