Definition - Agriculture land

[arvind agarwal]

Dear All, can anyone help me on the definition of the Agricultural Land, and its conditions to be fulfilled to be called an agricultural land. regards Arvind Agarwal(Adv) 9832356222

[DEV KUMAR KOTHARI]

Broadly speaking agricultural land means land which is actually used for agricultural purpsoes and the land itself is cultivated by performing agricultural operations. The activity of cultivation of land should be beyond doubt and not a stage managed affair which can be suspected.Thus the land must be actually cultivated for a considerable period in usual course(and not just after purchasing and/ or before selling), crop must be harvested and sold/ used, land revenue must be paid, information about crop cultivated should be given to concerned local authorities in prescribed returns etc. There are several decisions on this issue, if facts are not properly established, the land may not be regarded as agricultural land.

[Surender Gupta]

You may refer the caluse (2) of Article 366 of the Constitution of India (On this site in the "Misc. Provisions" section) which states that, "(1) "agricultural income" means agricultural income as defined for the purposes of the enactments relating to Indian income-tax;" Further, caluse (1A) of section 2 of the Income Tax 1961, defines the term agriculture income and item (a) or item (b) of sub-clause (iii) of clause (14) of section 2 of the Income Tax Act, 1961 which specifies capital asset.

AI Summary

Clarification on Agricultural Land for Tax: Genuine Cultivation Required; Refer to Article 366 and Income Tax Act Clauses. A query was raised regarding the definition of agricultural land for income tax purposes. One response explained that agricultural land must be genuinely used for cultivation, with actual agricultural operations performed, crops harvested and sold, and land revenue paid. It emphasized that cultivation should not be a superficial act to manipulate tax benefits. Another response referred to legal definitions, citing Article 366 of the Indian Constitution and specific clauses of the Income Tax Act, 1961, which define agricultural income and specify conditions under which land is considered a capital asset.