Exemption claiming on Agriculture Income on Lease Agriculture Land

[PRIYAM KHAMBHATA]

Respected Sir

Mr. A  is  Agriculturist and he is doing Agriculture Activity on Lease agriculture land. Mr. A  is paid Lease Rent to Land owners and also incurred huge Agricultural Expenses. In this situation Mr. A  will going to claim Exemption of Net  Agriculture Income for the year under consideration.  Mr. A  is earned handsome Agriculture Income. Please note that major income is Agriculture Income out of Total income.

Please guide me on above situation. 

Thanks 

[FCA Adv amit aggarwal]

Mr A income is considered as agriculture income. it will be fully exempt

if you provide these- tax planning can be provide,

1. detail regarding agriculture - crops cultivation, nursery or any other

2. any other income - like interest or business in your hands addition to agriculture income

AI Summary

Agricultural income from leased land remains fully exempt when derived from genuine cultivation or nursery activity. Agricultural income earned by an agriculturist from cultivation or similar agricultural activity on leased agricultural land is treated as agricultural income and is fully exempt, even where lease rent is paid and agricultural expenditure is incurred. The stated position assumes the income arises from genuine agriculture, such as crops cultivation or nursery activity, and that any other income in the taxpayer's hands is separately identifiable.