Agricultural land

Querist : Anonymous (Querist) 03 September 2011 This query is : Resolved
What are the documents required to buy agricultural land in Maharashtra.

I do not own any agricultural land in India.

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Sankaranarayanan (Expert) 03 September 2011
As per Income Tax Act income earned from any of the under given three sources meant Agricultural Income;

(i) Any rent received from land which is used for agricultural purpose.

(ii) Any income derived from such land by agricultural operations including processing of agricultural produce, raised or received as rent in kind so as to render it fit for the market, or sale of such produce.

(iii) Income attributable to a farm house subject to the condition that building is situated on or in the immediate vicinity of the land and is used as a dwelling house, store house etc.

Agriculture income is exempt under the Indian Income Tax Act. This means that income earned from agricultural operations is not taxed. The reason for exemption of agriculture income from Central Taxation is that the Constitution gives exclusive power to make laws with respect to taxes on agricultural income to the State Legislature. However while computing tax on non-agricultural income agricultural income is also taken into consideration.

income earned from carrying nursery operations is also considered as agricultural income and hence exempt from income tax.

In order to consider an income as agricultural income certain points have to be kept in mind:
There must me a land.
The land is being used for agricultural operations.
Agricultural operation means that efforts have been induced for the crop to sprout out of the land . If any rent is being received from the land then in order to assess that rental income as agricultural income there must be agricultural activities on the land.

(v) In order to assess income of farm house as agricultural income the farm house building must be situated on the land itself only and is used as a store house/dwelling house.

Certain income which is treated as Agriculture Income;
Income from sale of replanted trees.
Rent received for agricultural land.
Income from growing flowers and creepers.
Share of profit of a partner from a firm engaged in agricultural operations.
Interest on capital received by a partner from a firm engaged in agricultural operations.
Income derived from sale of seeds.

Shailesh Kr. Shah (Expert) 03 September 2011
mr. Sankar
Please read query again. I think Your advised not releated to query.

prabhakar singh (Expert) 03 September 2011
But some one from Maharashtra versed in revenue law should answer it,i am also anxious to know it.

bhagwat patil (Expert) 08 September 2011
As per Btal act sec 63 you cannot bye agricultural land in Maharastra., if you don't have agricultural land in anywhere in India.but you can bye for industrial purpose,or otherwise obtain a certificate sa you are bonafide former from tahashidar.

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