Taxability of agricultural income in particular case.
This query is : Resolved
Manish Bajaj
(Querist)
01 December 2014
Dear Sir,
If a person has the income from bussiness and also have agricultural income in form of share of profits from partnership firm. so how we will compute his taxable income .
Whether this income will be considered as agricultural income of individual and will be included in total income for comuting tax or it will be considered as the income of partnership firm and exempt for individual u\s10
If a person has the income from bussiness and also have agricultural income in form of share of profits from partnership firm. so how we will compute his taxable income .
Whether this income will be considered as agricultural income of individual and will be included in total income for comuting tax or it will be considered as the income of partnership firm and exempt for individual u\s10
01 December 2014
https://www.caclubindia.com/articles/tax-treatment-of-agricultural-income-18702.asp#.VHw6oNKUdic
CA R SEETHARAMAN
(Expert)
01 December 2014
Certain income which is treated as Agriculture Income;
(a) Income from sale of replanted trees.
(b) Rent received for agricultural land.
(c) Income from growing flowers and creepers.
(d) Share of profit of a partner from a firm engaged in agricultural operations.
As the share of profit treated as agricultural income in the hands of individual it will be included in total income for computing tax.
(a) Income from sale of replanted trees.
(b) Rent received for agricultural land.
(c) Income from growing flowers and creepers.
(d) Share of profit of a partner from a firm engaged in agricultural operations.
As the share of profit treated as agricultural income in the hands of individual it will be included in total income for computing tax.
Manish Bajaj
(Querist)
02 December 2014
But the profits from the partnership firms are exempt u\s10(2A). so why it should be included in the total income for computing tax.
CA R SEETHARAMAN
(Expert)
02 December 2014
The tax on profits from the firm is paid by the firm hence exempt u/s 10(2A) . Here the agricultural income is exempted from tax in the hands of firm.
Manish Bajaj
(Querist)
02 December 2014
It means it is exempt for the individual and firm both. because if it is exempt u\s10(2a)then it will be not included in the total income of individual as agricultural income for computing tax.
CA R SEETHARAMAN
(Expert)
02 December 2014
Share of agricultural income from firm will be included in individuals income for rate purposes.
Manish Bajaj
(Querist)
02 December 2014
But If it is a compay not a partnership firm for agricultural purposes then what will be procedure for tax computation of indivdual.
CA R SEETHARAMAN
(Expert)
02 December 2014
If it is a company it will not be considered for tax computation of individual.
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