Income from Farm House/Building Attached to Agricultural Land

Income derived from

any building which is in immediate vicinity of agricultural land in India

and is used for dwelling house/storage house

by cultivator/receiver of rent is also Agricultural Income

Provided  if such land is situated in urban area

the land is assessed to land revenue /local rate

Conditions to be satisfied

Note :-  

Urban Area means

      Area situated in some municipal Area

       [Municipality/Cantonment Board etc.] of area having

      10000 population or more

             +

      Any Nearby Area  within specified km as mentioned below               

Population of Municipal Area having population	No of Km from area
10000- 100000	2 km from such area
100001-1000000	6 km from such area
>1000000	8 km from such area

 

Note:-Area is to be measured aerially i.e.shortest possible distance to be taken

 

(2) Building may be in either urban or rural area . Only condition is that if it is in Urban Area then it should be assessed to land revenue

(i.e. House tax etc has been paid on it)

  QUESTIONS

Q1

Mr A owns a farm land in a village which has a small house attached to it. He gives it on rent to Mr B @ 6000 pm(Rs 5000 for land and Rs 1000 for hut). Mr B use it for agricultural purpose and hut for staying

How is Rent taxable in hands of Mr A

Q2 Suppose in Q1 Mr B use the house for storing his produce

Q3

Suppose in Q1 Mr B use the house for running a tea shop

Q4

Mr A owns an a house in Delhi, He gives it to Mr. B on rent who is a farmer at a rent of 10000 pm. Mr B use it as dwelling house for staying.