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I would like to invest in Agriculture. Shall I get Income Tax Benefits like Deductions or Exceptions?

April 26, 2017Agriculture Benefits Business Finance India invest shall taxes

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I would like to invest in Agriculture. Shall I get Income Tax Benefits like Deductions or Exceptions?

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Agriculture income is totally tax free for those whose income is below taxable. But for persons whose income is more than taxable limit, then it will be added to the income for rate purpose, that is your tax slab will be increased. I am giving you an example. 1) Your salary income Rs.4,00,000. Tax on It will be Rs.71,400 /- (2) your salary income Rs.4,00,000, Ag.Income say Rs.1,00,000/-; Your tax will be Rs. 86,700/-. So for you it is not totally free. At the same time, if you buy Ag.land now and sell the same at a later date, if the ag.land is 8km away from local administration limits called Panchayat limits or Municipality limits (Having more than 10,000 population), then the gains if any from sale of land is tax free. Otherwise you have to pay income tax (Capital gains) on the gains at the time of you sell the lands later.