Section 7 in The Assam Agricultural Income-Tax Act, 1939
7. Determination of agricultural income.
- The agricultural income mentioned in sub-Clause (1) of Clause (a) of Section 2 shall be deemed to be the sum realised in the previous year on account of agricultural income mentioned in the said sub-Clause (1) after making the following deductions :(a)the sum actually paid in the previous year as revenue to the Government or as rent to superior landlord in respect of the land from which such agricultural income is derived;(b)the sum actually paid in the previous year in respect of such land as any local rate collected under enactment in force in Assam;(c)a sum equal to 15 per cent of the total amount of the rent which accrued due in the previous year, in respect of the charge for collecting the same;(d)any rate under the Village Chowkidari Act, 1870, in respect of any building used by the assessee as an office for the collection of the rents due in respect of the land from which such agricultural income is derived;(e)any expenses incurred on the maintenance of any irrigation or protective work constructed for the benefit of the land from which such agricultural income is derived;(f)in respect of the current repairs to any capital asset used in connection with the collection of rents due in respect of the land from which agricultural income is derived, the amount paid on account thereof;(g)interest actually paid on any amount borrowed and actually spent on any capital expenditure incurred after the First April, 1937 for the benefit of the land from which such agricultural income is derived;(h)depreciation in respect of any capital asset purchased or constructed after First April, 1937 for the benefit of the land from which such agricultural income is derived, or for the purposes of deriving such agricultural income from such land at such rates as may be prescribed by the Central Government for computing profits or gains of any business for the purpose of assessment of income-tax thereon and in default of such prescription prescribed by rules under section 50;(i)any interest actually paid on any mortgage of any other kind of debt or any interest actually paid on any other capital charge incurred for the purpose of acquiring the property from which such agricultural income is derived;(j)when the property from which such agricultural income is derived is subject to a mortgage created before the 1st day of January 1939, the amount of any interest actually paid on such mortgage;(k)any malikana or similar levy actually paid by the assessee in respect of the land from which such agricultural income is derived;(l)any sum actually paid as interest in respect of loans taken under the Agricultural Loans Act, 1884, and the Land Improvement Loans Act, 1883; and(m)any sum actually donated for charitable purposes if such donation in aggregate is not more than Rs. 5 lakh or ten per centum of the total agricultural income, whichever is less; provided that such sum is actually spent for such purposes in the state of Assam .(n)such other deductions on account of depreciation or any other cause as may be prescribed by rules under Section 50.
