Agri.income

I have no agriculture land on my name But I had taken agriculture land on Rent from Land Loard for doing agricultural activities. I am paying rent to Landload as per agreement entered into us. So, I want to Know that income earned on sale of agriculture products is taxable on my hand or not ? It is cleared that Rent income from Agri.Land is exempted in the hand of Landloard or owner of the Agri.Land. But what is the tax treatment for tenant. Kindly guide me as the Income tax Act.
Replies (8)
Quick Summary
This discussion clarifies whether income earned from selling agricultural products grown on rented land is taxable. According to Section 10(1) of the Income Tax Act, agricultural income in India is generally exempt from tax, regardless of whether the land is owned or rented. While the landlord's rental income from agricultural land is exempt, the tenant's income from selling the produce is also typically tax-free. However, agricultural income might be considered when calculating the tax rate for other taxable income.

You will pay rental tax.

You will pay tax on business income.

Whether you do agriculture on your own land or on rental land tax won't be applicable.

it is exempted u/s 10(1)

Whether you do agriculture on your own land or on rental land tax won't be applicable.

it is exempted u/s 10(1)

Nature of Assets

Rate of TDS to be deducted while paying rent

Rent paid on plant/ machinery/equipment

2%

Rent paid on land/ building/ furniture/fittings

10%

As per Section 10(1) of the Income Tax Act, agricultural income earned by the taxpayer in India is exempt from tax. Note that agricultural income is considered for rate purposes while computing tax liability.

Ok ignore the above answer.

Your agriculture income is exempt in your hand
Agree with yasaswi

Pl see below the definition as per Income Tax Act .

This income is exempt as per section 10(1).

(1A) 1"agricultural income" means—

(a) any rent or revenue derived from land which is situated in India and is used for agricultural purposes;

(b) any income derived from such land by—

(i) agriculture; or

(ii) the performance by a cultivator or receiver of rent-in-kind of any process ordinarily employed by a cultivator or receiver of rent-in-kind to render the produce raised or received by him fit to be taken to market; or

(iii) the sale by a cultivator or receiver of rent-in-kind of the produce raised or received by him, in respect of which no process has been performed other than a process of the nature described in paragraph (ii) of this sub-clause;

(c) any income derived from any building owned and occupied by the receiver of the rent or revenue of any such land, or occupied by the cultivator or the receiver of rent-in-kind, of any land with respect to which, or the produce of which, any process mentioned in paragraphs (ii) and (iii) of sub-clause (b) is carried on :

If you have other income also then you have to go according to tax rate purpose

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