When income from farm building may be treated as agricultural income under Section 2(1A)(c)?

Ans. Income from a farm building may be treated as agricultural income if the following conditions are satisfied:

(a) If such a building is:

• Owned and occupied by the receiver of revenue or rent; or
• Occupied by the cultivator or receiver of rent-in-kind;

(b) If such building is on or in the immediate vicinity of the land, situated in India, and used for agricultural purposes;

(c) If such building is used as a dwelling-house, as a store-house, or as an out-building (out-house) by the receiver of the rent or revenue (in cash) or the cultivator or the receiver of rent-in-kind because of his connection with the land;

(d) If the land is assessed to land revenue in India or is subject to a local rate. Where it is not assessed to land revenue or local rate, it should be situated in a rural area.