| Question And Answer | |
|---|---|
| Subject: | Dairy farming |
| Category: | Income-Tax |
| Querist: | Rishab Upreti |
| Answered by: | Law Intern |
| Tags: | Agricultural land, Dairy farming income, Dairy income |
| Date: | June 20, 2026 |
“I am asking whether the land used for dairy farming (which is on my home premises, where my cow shelter is located) is taxable or not. I am currently paying tax on this land as house tax, and it is not away from my house—it is part of my home premises. Does this land come under house tax or agriculture tax? Also, is the land which is used for dairy farming also taxable, or is only the dairy farming capital taxable?”
If the land is being assessed to house tax, it implies it is not “agricultural” land and is not entitled to tax exemption. You may check the land records with the Panchayat for a definite answer whether the land is classified as agricultural or not.
Income from dairy farming (sale of milk, etc.) is assessable as business income (taxable under the Income Tax Act) and is not exempt agricultural income.