Section 8(2) in The Assam Agricultural Income-Tax Act, 1939
(2)Rules prescribing the manner of determining the net amounts of agricultural income for the purpose of this clause shall provide that the following deductions shall be made from the gross amounts of such income, namely:(a)the sum actually paid in the previous year as revenue to the Government or as rent to a 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 any enactment in force in Assam;(c)any rent paid under Village Chowkidari Act, 1870, in respect of any building used for the purposes of cultivation of land from which such agricultural income is derived;(d)the expenses of cultivating the crop from which such agricultural income is derived and of transporting such crop to market, including the maintenance of agricultural implements and cattle required for the purpose of such cultivation and for transporting the crop to market;(e)any tax, or rate paid under any enactment in force in Assam on the cultivation or sale of the crop from which such agricultural income is derived;(f)(i)any expenses incurred on the maintenances of any irrigation or protective works constructed for the benefit of the land from which agricultural income is derived;(ii)any expenses incurred on the maintenance of the capital asset, if such maintenance is deemed to be required for the purpose of deriving such agricultural income from such land;(iii)interest actually paid on any amount borrowed and actually spent on any capital expenditure incurred 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;(iv)(a)depreciation of any asset required 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, subject to the provisions of this Act in the manner allowed and at the rates prescribed for the purposes of Indian Income-tax Act or in default of such prescription as prescribed by rules under Section 50 of this Act;(b)in respect of any such machinery or plant which in consequence of its having become obsolete has been sold or discarded, the difference between the written down value as defined for, the purposes of Indian Income-tax and the amount for which the machinery or plant is actually sold or its scrap value;(v)any sum paid in order to effect on insurance against loss or damage of crop or property from which agricultural income is derived :Provided that notwithstanding anything contained in this Act in the case of an assessee in whose case deduction on the account is made in assessment any amount received by him from the insurance company in any year shall be deemed to be for the purposes of this Act agricultural income after deducting the share or portion thereof assessed to the Indian Income-tax Act;(vi)any interest paid on any mortgage or other capital charge incurred for the purpose of acquiring the property from which such agricultural income is derived or for the purposes of cultivation of the property.(vii)any expenditure (not being in the nature of capital expenditure) laid out or expended wholly and exclusively for the purpose of earning or deriving the agricultural income; provided that such expenditure, if laid out or expended wholly and exclusively for the purpose of earning income chargeable of tax under the Income Tax Act, 1961 (43 of 1961) would have been admissible for deduction under that Act;(g)any sum actually donated for charitable purposes, if such donation is not more than Rs. 5 lakhs 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;(h)such other deductions as may be prescribed by the rules made under Section 50 of this Act:Provided always that no deduction shall be made under this clause, if it has already been made under Section 7 of this Act or in the assessment under the Indian Income-tax Act;Provided further that in case of agricultural income from cultivation and manufacture of tea the agricultural income for the purposes of this Act shall be deemed to be that portion of the income from cultivation, manufacture and sale which is agricultural income within the meaning of the Indian Income-tax Act and shall be ascertained by computing the income from the cultivation, manufacture and sale of tea as computed for Indian Income-tax Act from which shall be deducted any allowance by this Act authorised in so far as the same shall not have been allowed in computation for the Indian Income-tax Act.
