Nature of Income
Entire amount of such income
Conditions laid down for Tax Exemption
Agricultural income is defined in section 2(1A) which means any rent or revenue derived from land situated in India and used for agricultural purpose and subject to other conditions
It includes income from such land by agriculture or from performance / sales by cultivator or receiver of rent in kind to render produce raised or received to make it fit to take it to market
income derived from saplings or seedlings grown in nursery
income derived from any building owned or occupied by cultivator or receiver
of rent used for purpose referred in clause 2.
However income derived from processing of agricultural produce would not be considered as agricultural income.
Income under this clause would be included in total income for limited purpose of determining rate of tax.