ITR
Agricultural income above ₹5,000
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Facts
Agricultural income is exempt but used to compute the tax rate. If it exceeds ₹5,000, ITR-1 cannot be used and ITR-2 is needed.
Provisions and law
- Rule 12, Income-tax Rules 1962 (now Rule 164, Income-tax Rules 2026)Prescribes the ITR forms and who must use which form.
- Sec 10(1), Income-tax Act 1961 (now Sec 11, Income-tax Act 2025)Agricultural income is exempt.
Analysis
Report agricultural income in the exempt income schedule with land details where asked. It may increase tax on other income through rate aggregation. Keep land records. Use ITR-2.
Conclusion
- Total agricultural income.
- Keep land records.
- Use ITR-2.
- Report in the exempt income schedule.
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