TaxTMI 
TaxTMI 
AGRICULTURE INCOME
16 Jun 2010 
3 Replies 
1585 Views Asked by
Agricultural income: sale proceeds from trees planted and cultivated on land are treated as agricultural produce and exempt.
Proceeds from cutting and selling trees that the taxpayer planted and cultivated on land qualify as agricultural income; agricultural produce obtained by cutting (including branches, flowers, leaves or roots) is treated as agricultural income. Where standing or half-mature crops or saplings are acquired with land, if the buyer performs cultivation leading to maturation the resulting sale proceeds are likewise agricultural income. (AI Summary)
Proceeds from cutting and selling trees that the taxpayer planted and cultivated on land qualify as agricultural income; agricultural produce obtained by cutting (including branches, flowers, leaves or roots) is treated as agricultural income. Where standing or half-mature crops or saplings are acquired with land, if the buyer performs cultivation leading to maturation the resulting sale proceeds are likewise agricultural income. (AI Summary)
I HAVE BOUGHT MOUNTAIN LAND 15 ACRES..... AND HAVE PLANTED TREES LIKE SAFEDA, DARENK, ETC.... TWO GARDNERS HAVE ALSO BEEN APPOINTED FOR THE SAME ( FOR LOOK AFTER OF TREE AND FOR WATER THE PLANTS ) THE PLA PLEASE INFORM WHETHER INCOME AFTER CUTTING OF TREE.. WILL BE TAXABLE OR EXEMPTED ...... THANKS IN ADVANCE FOR PROMPT REPLY PLZ.