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ITR filing FY 2020-21: Is Agricultural Income tax free in India? Know THESE 3 important things
If you have Agricultural Income, you can still file for ITR, however as per section 10(1), agricultural income earned by the taxpayer in India is exempt from tax.
Highlights
- What is tax on Agricultural Income?
- Is Agricultural Income tax free in India?
- THESE 3 important things will give you clarity.
New Delhi: The Income Tax Department in June extended the deadline for filing IT returns for the financial year 2020-21 due to the second wave of the COVID-19 pandemic. According to the usual practice, the last date for individual taxpayers who file ITR-1 or ITR 4 for the previous financial year 2020-21 ended March 31 is usually July 31 every year. However, individuals can now file tax returns for income earned in the financial year 2020-21 till September 30 instead of July 31.
If you have Agricultural Income, you can still file for ITR, however as per section 10(1), agricultural income earned by the taxpayer in India is exempt from tax. Agricultural income is defined under section 2(1A) of the Income-tax Act. For those with Agricultural Income tax, these 3 important things will give a lot of clarity.
As per section 2(1A), agricultural income generally means:
(a) Any rent or revenue derived from land which is situated in India and is used for agricultural purposes.
(b) Any income derived from such land by agriculture operations including processing of agricultural produce so as to render it fit for the market or sale of such produce.
(c) Any income attributable to a farm house subject to satisfaction of certain conditions specified in this regard in section 2(1A).
Any income derived from saplings or seedlings grown in a nursery shall be deemed to be agricultural income.
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