Crop Insurance Payment

Income Tax Income from Other Sources
1

Hi Team,

I have recently received Crop Insurance payment. Just wanted to know if this income is tax exempted or not ?

Also do we need to show in the tax returns.

Thanks.

2

Hey @Alex,

There’s not much clarity on the subject of crop insurance claims in the IT ACT. However, assuming that the payment received is related to agricultural income, it will be exempt. Moreover, it needs to be reported as agricultural income under “Exempt income” while filing the ITR.

Hope this helps!

1 Like
3

Hi @Surbhi_Pal

“Sale of agricultural products (Food Grains)” is taxable or not for a salaried person (morethan 15 Lks salary).

Salary + Agricultaural Income.

Thanks.

4

Hey @Alex,

Agricultural income is fully exempt when it is the only source of income. When you have other incomes, it does become taxable.

However, the tax is calculated a little differently. I’ve written about it in detail here: What is agricultural income and how is it taxed?

Let me know if you have any further doubts.