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Rent from government for laying pipe under agricultural land

ITR 350 views 1 replies

I have a client who has an agricultural land. The government has laid pipes under the land and paid him one time rent for the portion of land used for laying pipelines. TDS is deducted u/s 194 IB on the rent income. Please advise if such income is taxable or exempt as agricultural income. If taxable, then under what head of income?

Replies (1)

Hi,

Certailly it does not qualify for Agricultural income.

To match the TDS nature, suggest you to file as Income from House Property or Income from Other sources.

 

 


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