Dual Qualified Lawyer/ Solicitor Intern
1110 Points
Joined April 2022
Conditions for considering an income as agricultural income are:-
1. There must be a land situated in India
2. Income must be derived from such land by agriculture
Explanation 3 to s.2(1A) provides that "For the purpose of this clause, any income derived from saplings or seedings grown in a nursery shall be deemed to be agricultural income"
Per Explanation 3, hydroponic farming will be covered within ambit of section 2(1A).
It would be debatable whether for earning agricultural land, it is absolutely imperative that there must be an agricultural land as defined under state statutes. While section s.2(14) uses term "Agricultural land" s.2(1A) does not advert to such term anywhere and it simply uses words like "Agriculture", "agricultural purpose".