Kindly Look ... Very Urgent

RENT ON LAND IS COVERED UNDER AGRICULTURAL INCOM SEC 2

BUT SHPULD B FOR AGRICULTURAL PURPOSE ONLY

The Income should be taxable under Income from other Sources

income charge under other sources......

Does not constitute agricultural income, as it does not come from agricultural activity. it is Income from other sources

If it is usual business activity of  lending then Business Income otherwise To be charged under the Head Income from other sources. Cant be agricultural income

HI YOGESH,

INCOME FROM OTHER SOUCES BECAUSE IN ORDER TO TREAT RENT AS AGRICULTURAL INCOME, IT MUST HAVE TO SATISFY ALL THE CONDITIONS METIONED UNDER SEC 2(1A) OF IT ACT. ONE OF THE CONDITION SPECIIFIES THAT THE LAND MUST HAVE TO BE USED FOR AGRICULTURAL PURPOSE. SINCE IN THE GIVEN CASE, LAND IS RENTED OUT TO RELIANCE FOR CONSTRUCTING TELEPHONE TOWER, IT IS TAXABLE UNDER THE HEAD INCOME FROM OTHER SOURCES.

REGARDS,

MANOJ

ya above friends are correct , it is taxable under income from other sources only. not under Agricultural income

under other sources head as rental income from Reliance tower  rent

Originally posted by : Yogesh Shah
	Hye Folks ...   Our one client (individual) has lent his land to Reliance on which company installed Telephone Tower. Reliance pays monthly rent for this to our client. Main thing is that the land on which tower is installed is agricultural land.     Whether it is agricultural land or income from other sources?

in addition to this i also want to know if the land is in commercial area and the person lent his Plot to Reliance co or any other co, to install Tower and also he is living or doing business in the same plot.Can he takes this income under Income from house property can claim deduction of 30%.????

income under the head other sources

INCOME FROM OTHER SOUCES BECAUSE IN ORDER TO TREAT RENT AS AGRICULTURAL INCOME, IT MUST HAVE TO SATISFY ALL THE CONDITIONS METIONED UNDER SEC 2(1A) OF IT ACT. ONE OF THE CONDITION SPECIIFIES THAT THE LAND MUST HAVE TO BE USED FOR AGRICULTURAL PURPOSE. SINCE IN THE GIVEN CASE, LAND IS RENTED OUT TO RELIANCE FOR CONSTRUCTING TELEPHONE TOWER, IT IS TAXABLE UNDER THE HEAD INCOME FROM OTHER SOURCES.

Friends,

I have a question for all those persons who gave clarification on this subject.

If the land is of 10 acres which is fully used for agricultural purposes and just around 5cents is letout for Reliance telecom then why cant this be treated as agricultural income. since the definition just says that Land should be used for agricultural purpose it doesnt put a restriction saying it should be used in full for agricultural purposes. Why cant partial use for agricultural purposes satisfy the condition laid out u/s 2(1A)
 Pls reply.