Sky Has No Limits...! So Do I....!

Hey are you all aware that the agricultural income is not taxed in our country!!!!!!! When i was reading tax law for my examination I came to know that agricultural income is not taxed, but the act did not explain the purpose why it is not taxed...... so i decided to find out the purpose behind it...

First of all what is agricultural income according to the act?
In simple words agricultural income is, any rent or revenue derived from land which is situated in India and is used for agricultural purposes.

Now comes the question of why is it not taxed?
Predominantly people in India earn their Income through Agriculture. 70% of the population live in rural areas and depend on Agricultural Income. The agriculturalist depend only on the nature, therefor income is never stable. This income is mostly seasonal and one cannot predict the agricultural income level. If the agricultural income is also taxed then the cost of living in the city will be exorbitant, therefor it is wise that the government has taken the right step by not taxing Agricultural Income.........

AGRICULTURAL INCOME includes,

- Rent of Land (agricultural purpose)
- Revenue Income derived from Agriculture
- Income from making the produce fit to be taken to market
- Income from sale of produce
- Income from building: in following cases the income from building and house property is treated as Agricultural income
i) if that building is used for the agricultural storage purpose
ii) if it is in the immediate vicinity of the agricultural land (notified area limit 8 kilometers
from the local limits)

INCOME CONNECTED WITH LAND BUT NOT AGRICULTURAL INCOME
- income from spontaneous growth of grass, trees, etc.
- salary of a farm manager
- income from mines
- income from stone quarries
- income from fisheries
- income from annual kingdom

Finally after reading this article, i think u will all know what agricultural income is.... and for your general knowledge agricultural income comes under the section 10 and sub-section 1 of the Income Tax Act 1961........