What is the rule for Income arising from agriculture income and is there any tax to be paid if a agriculture land is sitauted in rural area and that land is sold.
The Agriculture Income is an "Incomes not included in total income" (Sec 10(1)). So no Tax on such Income.
If a Agriculture land in rural area is sold than there is not any kind of tax liability on such transaction. Since Agriculture land is not a Capital Assets so not any kind of capital gain shall arise. Sec 2(14)(III). you must refer few condition attached with the Sec. 2(14)(III) for this purpose.
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