In India, high-net-worth individuals lose up to 30-40% of their earnings to taxes. But there is one sanctuary left: Agricultural Income.
Section 10(1) Explained Under Section 10(1) of the Income Tax Act, 1961, income derived from agricultural operations is generally exempt from Income Tax.
- The Harvest: When we harvest your Sandalwood trees, the profit is treated as agricultural income, provided proper documentation of “active cultivation” is maintained.
- Capital Gains: If your farmland is classified as “Rural Agricultural Land, the land appreciation may also be exempt from Capital Gains Tax.
Important Note for 2025: Recent tax updates requires stricter proof of farming activities. This is why our Managed Farmland service is vital—we maintain all the cultivation records, soil reports, and labour logs you need to prove active farming to the IT department.
Disclaimer: Tax laws are subject to change. Always consult a CA regarding “Rural vs Urban” land classification.