Taxability of income derived from cultivation of cardamom
This query is : Resolved
27 February 2017
Dear sir,
I have some income derived from the cultivation of cardamom crops. Is the income derived from such activities taxable as it is a plantation crop? Can you please clarify weather the income is considered as agriculture income and is exempt under section 10(1) or is taxable?
I have some income derived from the cultivation of cardamom crops. Is the income derived from such activities taxable as it is a plantation crop? Can you please clarify weather the income is considered as agriculture income and is exempt under section 10(1) or is taxable?
21 May 2019
can anyone please help with the doubt
26 July 2025
Great question! Here’s the taxability clarification on income from **cultivation of cardamom**:
---
### Is income from cultivation of cardamom agricultural income?
* **Agricultural income** as per Section 2(1A) of Income Tax Act means income derived from:
* **Land used for agriculture** (i.e., cultivation of crops),
* **Agricultural operations** including activities like tilling, sowing, harvesting, etc.
* **Plantation crops** like cardamom, tea, coffee, rubber, etc., are generally considered **agricultural income** **if the land is used for cultivation.**
* Income from **cultivation of cardamom** is therefore considered **agricultural income** and is **exempt from income tax under Section 10(1)**.
---
### Important notes:
* If any **processing beyond basic agricultural operation** (like drying, grinding, packing) is done on a commercial scale, that may be considered a business activity and taxable.
* Income is exempt **only if it arises from agricultural land and basic agri activities**.
---
### Summary:
| Activity | Tax Treatment |
| ------------------------------------ | -------------------------------------- |
| Cultivation of cardamom on agri land | Agricultural income – exempt u/s 10(1) |
| Processing cardamom commercially | Business income – taxable |
---
If you want, I can help you with relevant case laws or how to document the exemption properly. Would you like that?
---
### Is income from cultivation of cardamom agricultural income?
* **Agricultural income** as per Section 2(1A) of Income Tax Act means income derived from:
* **Land used for agriculture** (i.e., cultivation of crops),
* **Agricultural operations** including activities like tilling, sowing, harvesting, etc.
* **Plantation crops** like cardamom, tea, coffee, rubber, etc., are generally considered **agricultural income** **if the land is used for cultivation.**
* Income from **cultivation of cardamom** is therefore considered **agricultural income** and is **exempt from income tax under Section 10(1)**.
---
### Important notes:
* If any **processing beyond basic agricultural operation** (like drying, grinding, packing) is done on a commercial scale, that may be considered a business activity and taxable.
* Income is exempt **only if it arises from agricultural land and basic agri activities**.
---
### Summary:
| Activity | Tax Treatment |
| ------------------------------------ | -------------------------------------- |
| Cultivation of cardamom on agri land | Agricultural income – exempt u/s 10(1) |
| Processing cardamom commercially | Business income – taxable |
---
If you want, I can help you with relevant case laws or how to document the exemption properly. Would you like that?
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