Agricultural Income

Agricultural Income and conditions to be satisfied to treat an income as an Agricultural Income:

Sec 2 (1) of Income Tax 1961 deals with the Agricultural Income. According to this section, if the following 3 …

 
Person [ Sec. 2(31)] : The word person is a wide term. It includes
·         Individual: It refers to a natural living human being.
 
·         HUF ( Hindu Undivided Family):  It means a family which consists of …

Casual Income [ Sec. 56] : Income from horse races, winning from lotteries, cross word puzzles, card gains or gambling or betting, winning from T.V programmes, lucky dips, conducted by business establishments are few examples …

Assessement Year [Sec. 2(9)] : It is defined under section 2(9), which states that Assessment Year is the period of twelve months commencing on the first day of April every year and ending on the last …

Previous Year [ Sec. 3 ] : It is defined under section 3 of Income Tax Act 1961, whivh means it is the period of twelve months before the commencement of the assessment year. Generally …

Assessee [ Sec. 2(7)] : Any person who is liable to pay tax or any other sum of money ( interest, penality, etc..) is an Assessee.
It is defined under section 2(7), which states that a …

Exceptions to the Rule that tax is levied on the income of Previous Year in Assessment year / Special Provisions of Income Tax Act 1961:
The Various exceptions or provisions of Income Tax Act 1961 are:
·         …

Taxes are of two types:
 

Direct Tax
Indirect Tax

Note: Income Tax is a direct tax.
Income is levied and collected by the central government, but such tax collected amount is shared by the Central and State government on …

Incomes Exempted From Tax:
The Incomes that are totally exempt from tax under various clauses of section 10 of the Income Tax Act 1961 are as follows….
·         Agriculture Income [ Sec. 10(1)]
·         Receipt from Hindu Undivided …