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Agriculture income

RAVINDRA GANGADHAR DEVALE (TAX PRACTITIONER) (277 Points)

28 August 2019

Dear sir, my client Agriculture income receipt credit in bank account 7 lakh so my query is how much income declare in itr return from agriculture income. full 7 lakh or other limits are available for agri income. thanks...

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4 Replies

Kapadia Pravin (17249 Points)
Replied 28 August 2019

Can declare 7 lakhs as Agri income. Agri income is fully exempt. it is considered only to determine ITax slab for non-Agri income.
since Agri income is more than 5 lakhs ,have to fill additional details about land location area hectares etc in return.

Shivam RC (Student) (23683 Points)
Replied 28 August 2019

You have to declare full Rs. 7,00,000 as Agriculture Income.

However, Agriculture Income is EXEMPTED under Section 10(1) of the Income Tax Act 1961. But the Agriculture Income is integrated with your Total Income for Tax Rate purpose. It is an indirect way of taxing agricultural income.

Suresh Thiyagarajan (Student) (3986 Points)
Replied 28 August 2019

1. Agricultural income is exempt from payment of tax u/s 10(1). However for the purpose of determination of tax rate it non-agricultural income, the same should be included as a part of total income and compute tax accordingly.
2. Yes, full agricultural income is to be included in ITR and then claim the deduction. If your non-agricultural income is below the basic exemption slab limit then no need to find tax liability for non-agricultural income.
3. However, if it is more than the basic exemption limit then to the extent of agricultural and basic exemption limit rebate will be allowed and the balance amount will be payable as tax.
4. Either way agricultural income of Rs. 7 lakhs should be specified in ITR.
Please correct me if the above solution has an alternative view.

G Sharath Kumar (56 Points)
Replied 27 August 2020

Can you explain with an example?
am a salaried of total taxable income 450000/-
my Agriculture income is 310000/-
expenditure incurred 185000/-
net Agriculture income is 125000/-
I filed ITR2 and mentioned the above details in Schedule EI.

Now my Taxable Income become 635000/-
it is showing amount in taxes payable column

how to exempt & which section.?