Agriculture Income and Tax implications

Certain income which is treated as Agriculture Income

    Income from sale of replanted trees.
    Rent received for agricultural land.
    Income from growing flowers and creepers.
    Share of profit of a partner from a firm engaged in agricultural operations.
    Interest on capital received by a partner from a firm engaged in agricultural operations.
    Income derived from sale of seeds.

Certain income which is not treated as Agricultural Income

    Income from poultery farming.
    Income from bee hiving.
    Income from sale of  spontaneously grown trees.
    Income from dairy farming.
    Purchase of standing crop.
    Dividend paid by a company out of its agriculture income.
    Income of salt produced by flooding the land with sea water.
    Royalty income from mines.
    Income from butter and cheese making.
    Receipts from TV serial shooting in farm house is not agriculture income.

When you have more than Rs 5,000 from Agri income and Rs 2L(most of us) or 2.5L(above 65 yrs) or 5L(Above 80 yrs) from Non-Agri income you need to integrate both. There is a specific calculation step you need to follow to arrive at how much you need to pay tax. Refer below URL for detail and make use of excel sheet … re-income/

Sir, You need to add hydroponic and cut flower farming in taxable income.