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 IncomeBy: Vatsal

2. Agricultural IncomeAgricultural income includes the following:-Any rent or revenue derived from landAny income derived from such land by agriculture or processing of agricultural produceAny income from farm buildingAbove income is deemed as agricultural income if following conditions are satisfied:-1.Income id derived from land2.Land should be situated in India3.Land should be used for agricultural purposes.

3. Agricultural IncomeIncome from toddy if recd. By cultivatorWhere owner performs tapping and sells rubberLease income derived by a lessor from lease of coconut gardenIncome derived from sale of grassIncome from growing flowers and creepersLease rent from lease of land for grazing of cattleCompensation from insurance company for damaged cropsIncome from sale of seeds.

4. Non-Agricultural IncomeIncome from sale of grass ,tress etc. grown spontaneouslyIncome from sale of salt produced by flooding of waterIncome from stone quarriesIncome from breeding of livestock.Income from dairy farming, butter and cheeseIncome from poultry farmingIncome from fisheriesPreservation of potatoes by refrigerationIncome from brick makingIncome from supplying water to agriculturalistsInterest on arrears of rentProfit on sale of standing cropsIncome derived from letting out of landRoyalty income of mines.

5. Partially Agricultural Income and Partially Business IncomeIncome from growing and manufacturing of any product other than teaIncome from growing and manufacturing of rubberIncome from growing and manufacturing of coffeeIncome from growing and manufacturing of tea

6. Tax on Non-Agricultural Income if assessee earns agricultural incomeIntegration is done only for- Individual/ HUF/BOIIt is not done for – Firm/ Company/ Co-operative society/ Local authorityIt 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 IncomeStep1:-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.