Shruti (XYZ) 01 February 2011

IT from agricultural land!!!

Hi,

I have some land in village which I have rented out for agricultural purpose. I have some other source of income also which I haven't disclosed to government.

According to IT rules, income from agricultural land is exempted from Income Tax. So my questions are:

1) What is the maximum limit of agricultural income which I can claim for exemption?

2) Can I show the other source of income also as agricultural income and avoid Income Tax?

3) Can I face any risk in the future. If yes, how.

Please advise!!

Sourabh

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2 Replies

A V Vishal (Advocate) 01 February 2011

You can ask as far as your query relates to tax planning but not evasion in this fora.

Vineet (Director) 03 February 2011

Do agree with Mr Vishal. This forum is not for suggesting evasion of tax.

By the way, there is no limit or exemption for Agricultural income as the agricultural income is taxed in a particular manner. effectively, agricultural income is fully tax exempt only if such income clubbed with your normal income does not exceed income slab of 10% tax rate i.e. Rs 300000/-.