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Is sale of fruits and vegetables grown at home agriculture income?

savdi (student) (58 Points)

20 November 2020

If I sell fruits and vegetables cultivated and grown in pots and land in my home premises, will it be considered agriculture income and it will be tax exempt?

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8 Replies

JATINDER KUMAR (Accountant) (3662 Points)
Replied 20 November 2020

No......

M BABU (203 Points)
Replied 20 November 2020

It is treated as business income

Shivam RC (Student) (23683 Points)
Replied 20 November 2020

It cannot be considered as Agriculture Income Sir and hence not Exempted U/s 10(1) of the Income Tax Act 1961.

savdi (student) (58 Points)
Replied 21 November 2020

Why cannot it be considered as Agriculture income? Please explain in details. Selling of nursery plants in pots and mushrooms cultivation (which is not actually done on agriculture land but in controlled environment) is considered agriculture income. Then why is fruits and vegetables grown at home not an agriculture income since I have to follow cultivation techniques like tilling of land, sowing of the seeds and taking care of the plants ??

savdi (student) (58 Points)
Replied 21 November 2020

Following article https://www.financialexpress.com/archive/cultivating-tax-free-income/47843/ mentions that
"If you grow flowers even in cities and towns on small plots of land, like in the compound of your house or even on a large terrace in earthen or plastic pots and you genuinely carry on this activity, the income would be treated as agricultural income and cannot be taxed."

Also refer this answer: https://www.quora.com/Is-agricultural-income-from-non-agricultural-land-exempt-from-income-tax/answer/Jagdish-Handa

Also Section 2(1A) of Income Tax Act which defines "agricultural income" does not restrict income from cultivation at home premises from the purview of "agricultural income" .