| Question And Answer | |
|---|---|
| Subject: | Exemption claiming on Agriculture Income on Lease Agriculture Land |
| Category: | Income-Tax |
| Querist: | kollipara sundaraiah |
| Answered by: | Law Intern |
| Tags: | agricultural activities, Agricultural Income |
| Date: | July 13, 2025 |
sir,
Mr. A is Agriculturist and he is doing Agriculture Activity on Lease agriculture land. Mr. A is paid Lease Rent to Landowners and also incurred huge Agricultural Expenses. In this situation Mr. A will going to claim Exemption of Net Agriculture Income for the year under consideration. Mr. A is earned handsome Agriculture Income. Please note that major income is Agriculture Income out of Total income.
If the income is derived from agricultural activities (as defined under Section 2(1A)), it is exempt under section 10(1) of the Income Tax Act. The fact that the land is taken on lease or that lease rent and agricultural expenses are incurred do not affect the exemption. These will, however, reduce the net agricultural income & exemption can be claimed on the residue.