Gross / Net Agricultural income

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Arpan Nayak

Article Tax Consultant

73 Points Joined April 2009

hello, seniors and juniors.

Well since many days i m confused regarding a point of Agricultural Income. While considering the same at the time of Filing the return, should we show it as Gross Agricultural Income or Net? as far as i have learnt and understood, i believe that as the whole income is exempt income, it is immaterial whether we consider the Gross or Net Agri. Income. while filling up ITR form. i doubt i may be wrong too.. Plz help me in this way to learn the correct thing.

Arpan Nayak

Replies (3)

CA.G.Muguntha Narayanan

Internal Auditor at TVS Motors

2195 Points Joined January 2010

Dear Arpan,

Definitely its net only. But the act is silent in this regard. hence, its beneficial for the assessee to take net agri income

Sunshine

Helping All

10575 Points Joined March 2010

yes its better to go for net agricultural income as the act is silent on it.......beneficial for the assessee..

Parth - CA,CS,CMA

Learner

406 Points Joined March 2008

Net.

And it is not immaterial. If u take up gross income, the assessee may land up taxing some portion of his regular income being taxed at higher slab. So it is material.

Consider this,

Net Agricultral Income = 30,000

Gross Agri Income = 1,70,000

And his income from salary is 5,00,000

Now if u try to solve this, u'll see that if we take gross income, the tax on 5 laks will be more. As more part of it will fall in the higher slab then.