INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME (CHAPTER-III)
SECTION-10 -Incomes not included in total income. Section 10 of the Income Tax Act, 1961 in India outlines various incomes that are exempt from being included in the total income of an individual or entity. These exemptions are granted for specific reasons and under certain conditions. Section 10(1) provides that agricultural income is not to be included in the total income of the assessee. The reason for total exemption of agricultural income from the scope of central income tax is that under the Constitution, the Central Govt. has no power to levy a Tax on Agricultural Income. “Agricultural income"2 means— (a) any rent or revenue derived from land which is situated in India and is used for agricultural purposes; (b) any income derived from such land by agricultural operation. As per Section 2 (1A) (c ) any income derived from any buildin...