Under the provisions of Section 10(1) of the Income Tax Act, agricultural income is fully exempt from income tax. However, for individuals or HUFs when agricultural income is in excess of Rs 5,000, it is aggregated with the total income for the purposes of computing tax on the total income in a manner, which results into "no" tax on agricultural income but an increased income tax on the other income.
I did get this point,so its ok,but my question is that whether any LIP premium paid from agro income on own life is deductible u/s 80 C or not
This is because even though there are no tax imposed on the agro income,but it is for that agro income only that my tax liability increases (on the non agro incomes).
Thanks in Advance