#farmincome

📌 What Counts as Agricultural Income?

Agricultural income includes: 🚜 Farming earnings 🏞️ Rent from agricultural land 🍇 Income from processing agricultural produce

✅ It is exempt from income tax but must be reported in your ITR if you also have other taxable income.

📝 Reporting Agricultural Income in ITR

If agricultural income exceeds ₹5,000, report it under the ‘Exempt Income’ section.

If you have other taxable income, agricultural income affects your tax slab (partial integration).

📊 Tax Treatment Under Presumptive Taxation

Income from processing produce beyond the basic stage is taxable.

Keep agricultural and non-agricultural portions clearly separated to avoid misreporting.

📂 Documents to Keep Ready 📜 Land ownership/lease records 🏠 Rent agreements 🧾 Sale receipts & expense proofs

These help substantiate agricultural income during tax scrutiny.

💰 Impact on Tax Liability

Agricultural income is tax-free itself but can push other income into a higher tax bracket.

Higher earnings may trigger a higher surcharge.