What Is Non Agricultural Income

Income from sale of land is capital gain income and not agricultural incomeincome from use of buildinghouse attached to land for any business or profession or letting for use as business or professionincome from performing only subsequent operations is not agricultural incomecommission earned by br.

Attestation de deplacement professionnel france belgique. Agricultural income refers to income earned or revenue derived from sources that include farming land buildings on or identified with an agricultural land and commercial produce from a horticultural land. Partial agriculture income is the income where assessee is growing agriculture produce and use them as raw material for manufacturing of products. They are as follows.

Such a situation arises in case of certain agro based industries where agricultural produce is used as raw material and it ie raw material is produced by the same person ie industrialist who manufactures industrial product by using such raw material. Revenue from the sale of processed products of agricultural nature without actual agricultural activity. The product must be produced by employing the human labour.

The primary sector that is agriculture contributed 60 or more of the total income and two thirds of total people employed were in the agriculutral sector. Here income from the sale of product is partial agriculture income and partial non agriculture income. The non agricultural income of the taxpayer exceeds the maximum amount non chargeable to tax.

The need to do so would arise only if his net agricultural income is greater than rs 5000 during the year and his non agricultural income is higher than the maximum amount not chargeable to tax under the tax slab. Sometimes income comprises of both agricultural as well as non agricultural income. The below mentioned list draws exception to that revenue or income which is generated by doing agriculture work but they are non agriculture income.

According to this section agricultural income generally means. If a farmer is generating agricultural income along with non agricultural income he will have to calculate the taxable income. Agriculture income is exempt under section 101 of the indian income tax act but while computing tax on non agricultural income agricultural income is also taken into consideration and when we compute tax taking agriculture income into consideration we pay tax on agriculture income also.

If any thing which is produced from the land without human effort then it will be called non agricultural income. Of age and rs300000 for the individual above than 60 yrs of age. Non agricultural income should exceed the amount of rs250000 for the individual below than 60 yrs.

Agricultural income is defined under section 21a of the income tax act 1961.