Agriculture income in Income Tax
This query is : Resolved
13 May 2023
Respected Experts.
one of my family friend is having 1 Agricultural land valuing 30 Lakhs and cultivating from it.
He asked to File his IT
can we prepare a P&L and Balance sheet for the Agricultural based Business
Or just can we show the Net Agriculture income in ITR without expenses
Additional Note:
He has Professional income as a Drama Artist - 30K per month
Kindly advise
one of my family friend is having 1 Agricultural land valuing 30 Lakhs and cultivating from it.
He asked to File his IT
can we prepare a P&L and Balance sheet for the Agricultural based Business
Or just can we show the Net Agriculture income in ITR without expenses
Additional Note:
He has Professional income as a Drama Artist - 30K per month
Kindly advise
13 May 2023
Under Section 10(1) of the Income Tax Act, 1961, any income generated from any agricultural activities are exempted from being taxed.
Net agricultural income is declared in ITR.
In ITR 1&4, agricultural income should be reported in the Agriculture Income column. However, ITR 1&4 must only be used if agricultural income is up to Rs.5,000. If the stated income goes over this limit, form ITR-2 or 3 must be filed.
If a farmer's income is less than Rs.5,000 or if the total income minus the agricultural income is less than the basic exemption limit which is Rs.2.5 lakh for a person below the age of 60 years and Rs.3 lakh for an individual aged 60 years and above, then the income generated will be exempted from being taxed.
Net agricultural income is declared in ITR.
In ITR 1&4, agricultural income should be reported in the Agriculture Income column. However, ITR 1&4 must only be used if agricultural income is up to Rs.5,000. If the stated income goes over this limit, form ITR-2 or 3 must be filed.
If a farmer's income is less than Rs.5,000 or if the total income minus the agricultural income is less than the basic exemption limit which is Rs.2.5 lakh for a person below the age of 60 years and Rs.3 lakh for an individual aged 60 years and above, then the income generated will be exempted from being taxed.
13 May 2023
Thank you so much sir,
So for Preparation of P&L Statement is not necessary for the Agriculturist right, even he earns in multiple lakhs.
Additionally, if i declare 600,000.00 as Agricultural Income ( Net) hope there will be no tax on the same.
So for Preparation of P&L Statement is not necessary for the Agriculturist right, even he earns in multiple lakhs.
Additionally, if i declare 600,000.00 as Agricultural Income ( Net) hope there will be no tax on the same.
13 May 2023
1. Agricultural income is based on area of land, crop harvested, seeds purchase bills, revenue records, water & electricity facilities, sells bills etc. etc.. You have to authenticate the earnings based on these facts, though proper accounts may not have been maintained.
2. The agricultural income would not be taxed, but your slab rate of other income gets raised to its proportionate.
2. The agricultural income would not be taxed, but your slab rate of other income gets raised to its proportionate.
13 May 2023
Thank you so much for your detailed explanation sir.
14 May 2023
You are welcome.
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