Section 8 in The Maharashtra Agricultural Income Tax Act, 1962
8. Computation of tax and allowances under the head "Agricultural Income from Agriculture".
- Agricultural income-tax shall be payable by an assessee under the head "Agricultural Income from Agriculture" in respect of all agricultural income derived from land referred to in sub-clause (b) of clause (1) of section 2 included in his total agricultural income and received by him in the previous year, subject to the following allowances, namely :-(1)the expenditure incurred by the assessee in the previous year -(a)in cultivating such land;(b)in performing any process contemplated in item (ii) of sub-clause (b) of clause (1) of section 2 for rendering the produce of such land fit to be taken to market;(c)in transporting such produce;(d)in maintaining agricultural implements and machinery in good repair and in providing for the up-keep of cattle for the purpose of such cultivation, process or transport;(2)any sum paid by him in the previous year in respect of such land on account of -(a)land revenue or rent,(b)any local rate or cess (including any education cess) in respect of such land;(3)any sum paid by him in the previous year as interest on any loan taken by him, for raising the agricultural produce of such land, for rendering such produce fit to be taken to the market, or for transporting such produce to market;(4)where his interest in such land is subject to a mortgage or other capital charge, the amount of any interest paid by him in the previous year in respect of such mortgage or charge, and where such land has been acquired, reclaimed or improved by him by the use of borrowed capital, the amount of any interest paid by him in the previous year in respect of such capital :Provided that, the interest allowable under this clause shall not exceed the interest which the assessee is liable to pay in respect of such mortgage, charge or capital as a borrower under the Bombay Money-lenders Act, 1946;(5)any sum paid by him in the previous year on account of the maintenance of any irrigation or protective work or other capital asset for the benefit of the land from which such agricultural income is derived.Explanation. - "Maintenance" includes current repairs and includes also in the case of protective dykes and embankments, all such works as may be necessary from year to year for repairing any damage or destruction caused by flood or other natural causes;(6)depreciation at such rate as may be prescribed, in respect of any irrigation or protective work or other capital asset (including machinery or plant) constructed or acquired for the benefit of the land from which such agricultural income is derived or for the purpose of deriving such agricultural income from such land;(7)in respect of any machinery or plant used exclusively for agricultural purposes which has been sold or discarded, the amount by which the written down value, of the machinery or plant exceeds the amount for which the machinery or plant is actually sold or its scrap value :Provided that, such amount is actually written off in the books of the assessee;(8)any sum paid by him in the previous year as premium in order to effect any insurance against loss of, or damage to, such land or any crops to be raised or any cattle to be reared thereon;(9)any other expenditure of the assessee (not being in the nature of capital expenditure or personal expenditure) laid out wholly and exclusively for the purpose of deriving agricultural income from such land;(10)any other sum which may be prescribed.
