by aditya abhishek
When someone start earning money, then for the development of the country they have to pay taxes to the government. But what if you are in agriculture sector?
Any income earned by selling saplings, renting agricultural land, commercial use of land, selling of seeds, etc. are considered as agricultural income.
However, if a farmer is earning money by selling products of poultry, apiculture, horticulture etc. then it is not considered as agricultural income.
Moreover income from any dairy product such as curd, cheese, milkshake, etc. are also not considered as agricultural income.
Under Section 10 (1) of the Income Tax Act of India, there is not tax imposed on agricultural income in India by the Central government.
But, state government can collect indirect tax only if the agricultural income is above INR 5000 in a financial year. Therefore you will need to pay applicable taxes.
It doesn't matter if you are a rural farmer or a urban farmer, agricultural income is considered tax free.
thanks for reading!