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Illustrations Of Agricultural & Non-Agriculturlal Incomes

Illustration of Agricultural Income :

  1. Income from the sale of trees from the forests where the trees were replanted and subsequent operations in forestry were carried out. [C.LT. v. Raja Benoy Kuinar Sahas Roy]

  2. Income from sale of dried tobacco leaves in which green tobacco leaves are dried by using some process.

  3. Amount received as compensation for dispossession of agricultural land—when an agriculturist assessee gets compensation from a person who was keeping unlawful possession of land owned by assessee as the compensation is for the agricultural income assessee would have earned. [Commissioner of Income-tax v. Manna Bamji & Co. 86 I.T.R. 29]

  4. Grazing fees realised from piece of land which was used for grazing animals used for agricultural purposes. [C.l.T. v. Raja Shamsherjang Bahadur]

  5. Income from growing of flowers i.e. floriculture by a landlord or a cultivator

  6. Sale of standing crop by a cultivator.

  7. Interest on capital and share of profit received by a partner from a firm engaged in agricultural activities.

Illustration of Non-Agricultural Income :

  1. Incomes from sale of trees from a forest where no tilling or other basic operations were carried and trees are of spontaneous growth

  2. Income from the sale of wild grass.

  3. Income from sale of gur or refined sugar acquired by using some manufacturing process.

  4. Income from sale of ginned cotton.

  5. Interest received by money-lender in the form of agricultural produce.

  6. Share of agricultural produce received by a person for supply of water.

  7. Remuneration received for managing agricultural farm.

  8. A Zamindar obtains promissory note from a defaulting tenant in respect of arrears of rent due to him, any interest which accrues on such note shall not be agricultural income.

  9. Commission received by the landlord for selling the agricultural produce of his tenants.

  10. Profit from sale or harvest of an agricultural crop, purchased by the assessee as standing crop, may be called as profit from trading operations.

  11. Income from sale of fruits of trees of spontaneous growth is not agricultural income

  12. Any annuity received (from agricultural land exchanged for annuity) is nc agricultural income.

  13. Remuneration received by a person for managing agricultural property is not agricultural income.

  14. Income from fisheries.

  15. Royalty income from mines and brick making.

  16. Interest on arrears of rent of agricultural land.

More topics on Agricultural Income :

  1. ‘DEFINITION’ Of Agricultural Income
  2. Tests To Determine Agricultural Income
  3. Types Of Agricultural Income
  4. Partly Agricultural and Partly Non-agricultural Income
  5. Illustrations Of Agricultural and Non-Agricultural Incomes
  6. Tax on Non-Agricultural Income if the Assessee has both Agricultural & Non-Agricultural Income
  7. Computation of Net Agricultural Income


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