Can I save Tax on earning from Farm House?

+2 votes
64 views
asked Feb 14, 2015 in Tax and Taxation by Siddharth Sinha
I have a farm house near Bhopal and I am earning about Rs. 5 Lakhs per annum from that farm house. I just want to know, the tax effect on this earning. Should I pay tax on this or some exemption is available on this.

1 Answer

0 votes
answered Apr 27, 2015 by Bharat Sinha Experts
Dear Mr Siddharth,

The income from a farm house is exempted for tax purpose. This provision is given in Income Tax Act in Section 2(1A)(c) and Section 10(1).

This was done to protect the farmers from taxing who are already Burdened for many issues like drought, malpractices of grain buyer.

If you are having a farm house and earning income from it alongwith other income then you should show it on your return but it will not be added on taxable income.

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