The document defines agricultural income and non-agricultural income for tax purposes. Agricultural income includes any income derived from land used for agricultural purposes in India, such as rent, crop sales, or farm building income. Non-agricultural income includes income from activities like stone quarries, dairy farming, poultry, fisheries, and brick making. Some incomes are partially agricultural and partially business. For individuals and HUFs with both agricultural and non-agricultural income, tax is calculated by integrating the incomes and comparing to the tax on agricultural income alone.

1. Agricultural Income By: Vatsal

2. Agricultural Income Agricultural income includes the following:- Any rent or revenue derived from land Any income derived from such land by agriculture or processing of agricultural produce Any income from farm building Above income is deemed as agricultural income if following conditions are satisfied:- 1.Income id derived from land 2.Land should be situated in India 3.Land should be used for agricultural purposes.

3. Agricultural Income Income from toddy if recd. By cultivator Where owner performs tapping and sells rubber Lease income derived by a lessor from lease of coconut garden Income derived from sale of grass Income from growing flowers and creepers Lease rent from lease of land for grazing of cattle Compensation from insurance company for damaged crops Income from sale of seeds.

4. Non-Agricultural Income Income from sale of grass ,tress etc. grown spontaneously Income from sale of salt produced by flooding of water Income from stone quarries Income from breeding of livestock. Income from dairy farming, butter and cheese Income from poultry farming Income from fisheries Preservation of potatoes by refrigeration Income from brick making Income from supplying water to agriculturalists Interest on arrears of rent Profit on sale of standing crops Income derived from letting out of land Royalty income of mines.

5. Partially Agricultural Income and Partially Business Income Income from growing and manufacturing of any product other than tea Income from growing and manufacturing of rubber Income from growing and manufacturing of coffee Income from growing and manufacturing of tea

6. Tax on Non-Agricultural Income if assessee earns agricultural income Integration is done only for- Individual/ HUF/BOI It is not done for – Firm/ Company/ Co-operative society/ Local authority It is done only when:- non- agricultural income exceeds max. exemption limit agricultural income exceeds Rs.5000.

7. Computation of Tax on if there is Non-Agricultural Income Step1:-Add agricultural and non-agricultural income and calculate tax on the same. Step2:- Add agricultural income to the maximum exemption limit and calculate tax on the same. Step3:-Tax payable= Tax in Step1 – Tax in Step 2.