Taxability of Agricultural Income in India

For taxation purposes, agricultural revenue in India is considered differently than other forms of income. Agricultural income derived from cultivation, animal husbandry, or forestry is excluded from income tax and does not count towards the total amount of income used to determine the tax rate for other income sources (although it may be included for rate purposes). This exemption suggests that there is no tax on agricultural income at the federal level in India. However, the Central Government does have authority to tax non-agricultural income at progressive rates. To distinguish between agricultural and non-agricultural income, tax authorities sometimes employ a technique called partial integration of agricultural income with non-agricultural income.