Taxability of seed plantation in city corridor
This query is : Resolved
14 September 2017
Hello Experts, my query is, what is the taxability of revenue from plantation of seeds in city corridor ? will it be an exempt income as agriculture income?
15 September 2017
any expert there who can answer??
26 July 2025
Good question! Here’s a clear take on the **taxability of income from seed plantation in a city corridor**:
---
### Agriculture Income – Basic Concept
* As per **Section 2(1A)** of the Income Tax Act, **agricultural income** includes:
* Rent or revenue derived from land used for agriculture
* Income from agricultural operations (like cultivation, harvesting, and processing)
* Sale proceeds of agricultural produce
* **Agricultural income is exempt from tax** under Section 10(1).
---
### But the Key Factor: Location & Nature of Activity
* For income to qualify as agricultural income, the cultivation or plantation **must be on agricultural land**.
* If plantation is done on **non-agricultural land** (like a city corridor, urban land, or non-agricultural zone), income is **not considered agricultural income**.
* Income from such plantation will be **taxable under the head "Income from Business or Profession" or "Other Sources"**, depending on facts.
---
### In Your Case: Seed Plantation in City Corridor
* Since city corridors are typically non-agricultural land,
* Income from seed plantation there **will not qualify as agricultural income**.
* Hence, **the revenue earned from seed plantation in city corridor will be taxable.**
---
### How to Treat It?
* If it is carried out as a business activity, treat income under **Business Income**.
* Otherwise, it may be considered under **Income from Other Sources**.
* Expenses related to the plantation can be claimed as deductions while computing taxable income.
---
### Summary:
| Nature of Land | Taxability of Plantation Income |
| -------------------------------- | ------------------------------------------- |
| Agricultural Land | Income exempt as agricultural income |
| Non-agricultural (City Corridor) | Income taxable under business/other sources |
---
---
### Agriculture Income – Basic Concept
* As per **Section 2(1A)** of the Income Tax Act, **agricultural income** includes:
* Rent or revenue derived from land used for agriculture
* Income from agricultural operations (like cultivation, harvesting, and processing)
* Sale proceeds of agricultural produce
* **Agricultural income is exempt from tax** under Section 10(1).
---
### But the Key Factor: Location & Nature of Activity
* For income to qualify as agricultural income, the cultivation or plantation **must be on agricultural land**.
* If plantation is done on **non-agricultural land** (like a city corridor, urban land, or non-agricultural zone), income is **not considered agricultural income**.
* Income from such plantation will be **taxable under the head "Income from Business or Profession" or "Other Sources"**, depending on facts.
---
### In Your Case: Seed Plantation in City Corridor
* Since city corridors are typically non-agricultural land,
* Income from seed plantation there **will not qualify as agricultural income**.
* Hence, **the revenue earned from seed plantation in city corridor will be taxable.**
---
### How to Treat It?
* If it is carried out as a business activity, treat income under **Business Income**.
* Otherwise, it may be considered under **Income from Other Sources**.
* Expenses related to the plantation can be claimed as deductions while computing taxable income.
---
### Summary:
| Nature of Land | Taxability of Plantation Income |
| -------------------------------- | ------------------------------------------- |
| Agricultural Land | Income exempt as agricultural income |
| Non-agricultural (City Corridor) | Income taxable under business/other sources |
---
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