How is agricultural income from land in India treated when computing total income under the Income-tax Act, 2025?
Question and options
How is agricultural income from land in India treated when computing total income under the Income-tax Act, 2025?
It is excluded from total income
It is included in total income at a concessional rate
It is included as income from other sources
It is included in total income above a threshold
Answer and explanation
Section 11 of the Income-tax Act, 2025, read with Schedule II, excludes agricultural income from total income. The Finance Act may take net agricultural income into account in fixing the rate on other income, but that does not bring it into total income or create a threshold above which it is taxed.
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