Agricultural income is exempt but must be reported if over ₹5,000; affects tax rate for other income; keep proof of earnings.
This infographic explains taxation of agricultural income in India. Agricultural income includes farming, rent from land, and processing produce. It is exempt from tax but must be reported in ITR if over ₹5,000. For those with other taxable income, agricultural income affects the tax slab. Maintain ownership records, sale receipts, and expense proofs for scrutiny. Segregate non-agricultural processing income, which is taxable. High agricultural income can push other earnings into a higher tax bracket.