Tds

Rent of Agricultural land is an agricultural income. Agricultural Income is exempt from income tax and is not to be included even in the total income.

Chapter III of the Act deals with incomes which do not form part of total income. Relevant S. 10(1) reads with its heading as : “Incomes not included in total income. 10. In computing the total income of a previous year of any person, any income falling within any of the following clauses shall not be included (1) agricultural income;”

It is obvious that in computing the total income under the Act, incomes which are exempt u/s.10 have to be excluded. Consequently they have to be excluded while applying the TDS provisions also. Hence, TDS is not to be deducted on payment of incomes exempted and excluded from the scope of total income under the Act. 

Agricultural Rent is an agricultural income and clearly excluded from the scope of total income u/s.10(1) of the Act. 

It is obvious that Rent of Agricultural land is completely out of the purview of not only TDS provisions but even income-tax