Tax Treatment of Agricultural Income Under Income Tax Law (As Amended by Finance Act, 2022)

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Description
Agriculture plays a vital role in Indian economy. Except for two short periods of nine years in all (1860-1865 and 1869-1873) agricultural incomes have been exempt from the general income-tax. In 1925, the Indian Taxation Inquiry Committee observed that there is no historical or theoretical justification for the continued exemption from the income-tax of incomes derived from agriculture. They found it justified to include agriculture income for rate purposes. It continues unchanged till date. Section 2(1A) of the Income Tax Act, defines "agriculture income". But some incomes are derived partly from agricultural and partly from non-agricultural operations. Also it is difficult to define agricultural operations. Hence a detailed analysis has been given to define taxability of such income under the Income Tax Act. Tax on agricultural income falls under the 'State list', meaning that only State Governments can levy income-tax on such incomes, not the Central Government. There is no clause for directly taxing agricultural income. According to Section 10(1) of the Income Tax Act, agricultural income is not  considered a means of income. Income generated from agriculture is exempted from taxation by the Central Government. However, there is an indirect method of taxing that is levied on agricultural income.
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Table of Contents
Chapter 1 : Introduction
Chapter 2 : Meaning of Agricultural Income
Chapter 3 : Tests to Determine Agricultural Income
Chapter 4 : Type of Agricultural Income
Chapter 5 : Exceptions - not Agricultural Income
Chapter 6 : Capital Asset - Agricultural Land
Chapter 7 : Sale of Agricultural Land - Held not Assessable as Capital Gain
Chapter 8 : Sale of Agriculture Land - Held Assessable as Capital Gains
Chapter 9 : Exemption of Agriculture Income
Chapter 10 : Exemption of Capital Gains & Interest Arise on Compensation Received on 
                           Compulsory Acquisition of Urban Agricultural Land
Chapter 11 : Capital Gain Tax on Sale of Urban Agricultural Land
Chapter 12 : Rules for Computation of Net Agricultural & Income
Chapter 13 : Treatment of Party Agricultural & Party Non-Agricultural Income
Chapter 14 : Impact of Agricultural Income on Tax Computation
Chapter 15 : Assessments Relating to Agricultural Income
Chapter 16 : Deductible Agricultural Expenses
Chapter 17 : Agricultural Income-Addition made held to be Justified
Chapter 18 : Agricultural Income - Addition made held to be Justified
Chapter 19 : Treatment of Cash Sales of Agricultural Produce
Chapter 20 : Treatment of Set-off & Carried forward of Losses from Agricultural 
Chapter 21 : Applicability of Section 14A Read with Rule Losses from Agricultural Activity
Chapter 22 : Adjustment from book Profits in the Computation as Provided
Chapter 23 : Cases where revision of Order under
Chapter 24 : Cases where Revision of order under Sec. 263 held to be  Justified
Chapter 25 : Cases where Reassessment was held to be  Justified
Chapter 26 : Cases where Reassessment held to be not Justified
Chapter 27 : Cases where Income held to be as Agricultural Income
Chapter 28 : Cases where Income held to be Non-Agricultural Income
Chapter 29 : Cases where Income Shown as Agricultural Income held as income from Business
Chapter 30 : Cases where Income Shown as Agricultural Income held as Income other Sources
Chapter 31 : Matter set Aside to the Assessing Officer for Verification
Chapter 32 : Levy of Penalty
Chapter 33 : Land & Revenue Records - Terms used in India
Chapter 34 : Important Forms
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Author Details
Ram Dutt Sharma, got his post-graduation (M.Sc.) from M.D. University, Rohtak in 1980. He joined the Income-tax Department in the year 1983 and presently working as Income Tax Officer in Faridabad. He worked at various stations of North-West Region of Income Tax Department. He has wide experience of all wings of Income Tax Department such as assessment unit, Special Range, TDS Wing, Investigation Wing, Intelligence and Criminal Investigation etc. He has been contributing articles and addressing on topics relating to Income Tax at Direct Tax, Regional Training Institute, Chandigarh. He has also addressed number of seminars organized by the Income-tax Department, Chartered Accountants, Advocates and various Trade Associations. He is the author of number of books on direct taxes, namely Computation of income from salary under income tax law with tax planning, Computation of income from house property, Formation and Management of Charitable and Religious Trust, Educational and Medical Institutions under income-tax law, Taxation of Non-Resident Indians under income-tax law etc. which have been highly appreciated by the readers.