Agricultural Income – Section 2(5) | Income-tax Act, 2025 vs 1961

§ 2(5) · Income-tax Act, 2025

Agricultural income

ITA 2025 · 2(5) ITA 1961 · 2(1A)
Definition — Section 2(5)

Means — (a) any rent or revenue derived from land situated in India and used for agricultural purposes; (b) income derived from such land by agriculture, or by processing of produce to make it marketable, or by sale of such produce by the cultivator; (c) income from a farmhouse on or in the immediate vicinity of such land, used as a dwelling, store-house or out-building by the cultivator, subject to the land being assessed to land revenue or not being situated in specified urban areas; and (d) income from saplings or seedlings grown in a nursery. Does not include income from building or land used for non-agricultural purposes, or income from transfer of urban agricultural land.

Act Comparison
Income-tax Act, 2025
2(5)
Agricultural income
Income-tax Act, 1961
2(1A)
Agricultural income
Key Points
  • Directly maps to Section 2(1A) of the 1961 Act
  • Agricultural income is exempt from income tax under Section 10
  • Partial integration with non-agricultural income for rate determination
💡 Practical Note

Though agricultural income is exempt, it is clubbed with total income to determine the applicable slab rate — a fact many taxpayers miss.

Published by Simplified Tax India — Clear, section-wise comparison of Income-tax Acts. ← Back to Section 2 Definitions Table
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