TAXATION OF AGRICULTURAL INCOME - AN OVERVIEW
Agricultural Sector has always been a sector of great importance all around. It not only employs a huge chunk of population but is also a saviour of many. As per a press release by Ministry of Finance ‘ Indian Agriculture contributes to green shoots of the Indian Economy with a Growth Rate of 3.4 Per Cent despite COVID-19 Pandemic’ . Hence its importance cannot be uprooted and attached with this is the taxation of such income. Let us have a look over the provisions relating to taxation of agricultural income as per the Income Tax Act and the rules and regulations made thereunder. Section 10(1) of the Income Tax Act, 1961, states that in computing the total income of a previous year of any person, agricultural income shall not be included . In other words agricultural income is exempt from income tax under section 10(1). This exemption is not limited to any specific class of persons. Any person (whether Individual, HUF, Company, Association of Persons, Body of Individuals, etc.) can av