Allowable Deductions from Determining Agriculture Income

Allowable Deductions from Determining Agriculture Income

Allowable Deductions from Determining Agriculture Income

Agriculture income means any income derived by cultivation from any land or building in a country like Bangladesh, India etc., and used for agriculture purpose. This income is considered for rate purposes while ascertaining the income tax liability of an individual. It is a vital sign as it gives information on the feasibility of the agricultural sector and is accurately taken into account into discussions on policy perspectives.

Examples of Agricultural Income: Income from sale of replanted trees; Rent received for agricultural land; Share of profit of a partner from a firm engaged in agricultural operations; Income derived from the sale of seeds etc.

The following are an allowable deduction from income of Agriculture –

  • Land development tax or rent.
  • Local tax.
  • Process cost.
  • Cultivation or raising livestock.
  • Repairing and maintains cost.
  • Transportation cost.
  • Insurance premium.
  • Maintenance cost of a capital asset.
  • Irrigation project cost.
  • Depreciation of capital assets.
  • Interest on a mortgage.
  • Interest on borrowed capital.
  • Balancing depreciation.
  • Loss on sale of agricultural tools.
  • Revenue expenditure.
  • Development cost.

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