TaxTMI 
TaxTMI 
Hi,
If land is purchased with standing trees and later on these trees are sold, would it be right to not treat the income as agriculture income just because basic operations were not performed by assessee himself but by the previous owner?
SALE OF STANDING TREES
13 Feb 2018 
5 Replies 
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Agricultural income: cultivated plantations sold qualify as exempt when produced by human labour and land assessed to revenue.
Receipts from sale of trees qualify as agricultural income where the trees result from active cultivation on land used for agricultural purposes-demonstrated by soil preparation, planting, watering, pruning and periodic harvesting-and where the land is assessed to land revenue; by contrast, income from spontaneous forest growth or from trees without such cultivation does not meet the agricultural exemption. (AI Summary)
Receipts from sale of trees qualify as agricultural income where the trees result from active cultivation on land used for agricultural purposes-demonstrated by soil preparation, planting, watering, pruning and periodic harvesting-and where the land is assessed to land revenue; by contrast, income from spontaneous forest growth or from trees without such cultivation does not meet the agricultural exemption. (AI Summary)