Earning from farm house is taxable or exempt
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
09 September 2012
Dear Sir/Madam,
We are 10 partners & leased a land of 110 acre in village planted "POPULAR TREE" & vegetables in that farm house & selling these vegetable in local market.The "POPULAR TREE" will be of 100 lacs afters five years that would be sold to the market. Is profit will be taxable in nature or exempt.
Please clarify how is it taxable or exempt with example.
Will be thankful.
Will be waiting for the prompt response.
Thanks & Regards in advance.
We are 10 partners & leased a land of 110 acre in village planted "POPULAR TREE" & vegetables in that farm house & selling these vegetable in local market.The "POPULAR TREE" will be of 100 lacs afters five years that would be sold to the market. Is profit will be taxable in nature or exempt.
Please clarify how is it taxable or exempt with example.
Will be thankful.
Will be waiting for the prompt response.
Thanks & Regards in advance.
09 September 2012
The ambit of agriculture covers all land produce like grain, fruits, tea, coffee, spices, commercial crops, plantations, groves, and grasslands. However, the breeding of livestock, aqua culture, dairy farming, and poultry farming on agricultural land cannot be construed as agricultural operations.
Ownership is not essential. In the case of rent or revenue, it is essential that the Assessee have an interest in the land (as an owner or mortgagee) to be eligible for tax-free income. However, in the case of agricultural operations it isn’t necessary that the person conducting the operations be the owner of the land. The above definition of agriculture includes PLANTATION. Agricultural income is exempt in India. So 100 lacs is exempt income. Suggestions from other experts are open...
Ownership is not essential. In the case of rent or revenue, it is essential that the Assessee have an interest in the land (as an owner or mortgagee) to be eligible for tax-free income. However, in the case of agricultural operations it isn’t necessary that the person conducting the operations be the owner of the land. The above definition of agriculture includes PLANTATION. Agricultural income is exempt in India. So 100 lacs is exempt income. Suggestions from other experts are open...
09 September 2012
Yes , as such income will be derived from land and with human effort. Therefore such income from plantation is covered under agriculture income.And therefore 100 lacs will be exempted income.
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