Taxability of Agricultural Income

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This query is : Resolved

CA Sanjay Baheti (Querist)
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17 November 2010 One of My Client being A Pvt.Ltd Co.is taken Agricultural Land of 50 Biga on lease rent from farmer & carried out agricultural operations thereon and marketing of agricultural products grown on the same land.

Now query is whether income from sale/marketing of said agricultural products to the company is exempt or taxable and if taxable whether it can be claimed lease rent as expenditure against such income which paid to farmer.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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17 November 2010 The same will be agriculture Income of the Pvt Ltd Co. which is exempt from Tax.

You have to Maintain separate accounts in which you may debot all the relevant expenses including the lease rentals.

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