Rent frm agriculture land

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Rishabh Garg

Rishabh Garg (Querist)
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01 May 2015 experts whether rent received frm agriculture land is taxable or not...???

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 May 2015 Rent from agricultural land, if it is used for agricultural operations then it is not taxable.

CA Hardik Bunha

CA Hardik Bunha (Expert)
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01 May 2015 if agriculture land situated in urban area then rent will be taxable.

Rupesh Jain

Rupesh Jain (Expert)
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01 May 2015 AGRICULTURE LAND in rural area and use for agriculture purpose then not taxable.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 May 2015 No Matter whether the land is urban or rural agricultural land. If agricultural operations are carried out on land the income derived from sale of such agricultural produce shall be treated as agricultural income and will be exempt from tax. Rent received from such urban land is exempted.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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07 May 2015 dear seetharaman.

are you sure? there is no exemption for income if the land is situated in urban area..

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 May 2015 I am sure.
See the link. If you have other views please provide the link for my information so that I stand corrected.

https://taxguru.in/income-tax/income-tax-treatment-taxability-of-agricultural-income.html

Q. why rent on land treated as agricultural income? what difference is there if the land is in specified area?
A. Rent received from agricultural land used from agricultural purpose is treated as agricultural income. This is the law. -

Nikhil Kaushik

Nikhil Kaushik (Expert)
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08 May 2015 and what is agriculture land? see the definition for the same. does it include urban agriculture land? refer section 2(1A) and 2(14).

It is only where a land satisfies the definition of agriculture land, income from the same becomes exempt. The urban agriculture lands will more often than not, wont satisfy this.

please please refer to this link from Income-tax website to understand which land is considered as agriculture land.

https://www.caclubindia.com/forum/agriculture-land-utility-income-tax-327011.asp

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 May 2015 Agricultural Income [Section 10(1)]
As per section 10(1), agricultural income earned by the taxpayer in India is exempt from tax.
Agricultural income is defined under section 2(1A) of the Income-tax Act. As per section 2(1A),
agricultural income generally means:
(a) Any rent or revenue derived from land which is situated in India and is used for agricultural purposes.

From the above it may be seen that Any rent or revenue derived from land which is situated in India and is used for agricultural purposes is exempted.
Nowhere it is stated as agricultural land. It has been stated as land situated in India. Urban land is covered in this definition.
I still differ with your view you may give a link for other's view.
That definition of agricultural land is for exemption from capital gain for rural agricultural land.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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08 May 2015 my apologies. I agree with your view. I was basing my opinion wrongly on clause c instead of clause a.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 May 2015 Thank you. I appreciate such discussions which will clear all our doubts.

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