Defination of Agricultural Income in Income Tax Act 2025

agri­cul­tur­al income” means—
(a) any rent or rev­enue derived from a land which is sit­u­at­ed in
India and is used for agri­cul­tur­al purposes;
(b) any income derived from such land by—
(i) agri­cul­ture; or
(ii) the per­for­mance by a cul­ti­va­tor or receiv­er of rent-in-kind
of any process ordi­nar­i­ly employed by a cul­ti­va­tor or receiv­er of
rent-in-kind to ren­der the pro­duce raised or received by him fit to
be tak­en to mar­ket; or
(iii) the sale by a cul­ti­va­tor or receiv­er of rent-in-kind of the
pro­duce raised or received by him, in respect of which no process
has been per­formed oth­er than a process of the nature described in
item (ii);
© any income derived from any build­ing owned and occu­pied by
the receiv­er of the rent or rev­enue of any such land, or occu­pied by the
cul­ti­va­tor or the receiv­er of rent-in-kind, of any such land with respect
to which, or the pro­duce of which, any process men­tioned in
sub-clause (b)(ii) and (iii) is car­ried on, where such building––
(i) is on or in the imme­di­ate vicin­i­ty of such land and that
land is assessed to land rev­enue in India, or is sub­ject to a local
rate assessed and col­lect­ed by offi­cers of the Gov­ern­ment as such,
or where the land is not so assessed to land rev­enue or sub­ject to a
local rate it is not sit­u­at­ed in any area as spec­i­fied in
clause (22)(iii)(A) or (B); and
(ii) is required as a dwelling house, or as a store-house, or
oth­er out-build­ing, by the receiv­er of the rent or rev­enue or the
cul­ti­va­tor, or the receiv­er of rent-in-kind, by rea­son of his
con­nec­tion with the land;
(d) any income derived from saplings or seedlings grown in a nursery,
but shall not include––
(i) the income derived from any build­ing or land referred to in
sub-clause © aris­ing from the use of such build­ing or land for any
pur­pose (includ­ing let­ting for res­i­den­tial pur­pose or for the pur­pose of
any busi­ness or pro­fes­sion) oth­er than agri­cul­ture falling under
sub-clause (a) or (b); or
(ii) any income aris­ing from the trans­fer of any land referred to in
clause (22)(iii)(A) or (B);