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

  Income from Farm House/Building Attached to Agricultural Land - What is Agricultural Income

Conditions to be satisfied

 

LAND IN  URBAN AREA LAND IN  RURAL AREA

Land is Used for Agricultural Purpose

and

Building is in Immediate vicinity of land

Land is Used for Agricultural Purpose

and

Building is in Immediate vicinity of land

Building is used for

  • Dwelling house
  • Store house
  • Other Out building

             by    

      cultivator of land /receiver of rent or revenue

Building is used for

  • Dwelling house
  • Store house
  • Other Out building

             by    

cultivator of land /receiver of rent or revenue

Land is situated in India Land is situated in India

3.It should be assessed to land revenue

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

N/a

 

 

 

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

View Answer

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

View Answer

Q3

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

View Answer

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.

View Answer
  1. Income Tax
  2. Agricultural Income
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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides GST Training in Delhi. Register now.