Section 7 in The Bengal Agricultural Income-Tax Act, 1944
7. [ Computation of Tax and Allowances under the Head "Agricultural Income from Agriculture". - [Section 7 was renumbered as sub-section (1) by W.B. Act 16 of 1994. Then that sub-section (1) was again renumbered as section 7 by W.B. Act 10 of 1996.]
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 cost incurred by the assessee in the previous year:-(i)in cultivating such land or raising livestock thereon;(ii)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;(iii)in transporting such produce or livestock to market; and(iv)in maintaining agricultural implements and machinery in good repair and in providing for the upkeep of cattle for the purpose of such cultivation, process, or transport :Provided that in the case of an agricultural income derived from land possessed by an individual or a Hindu undivided family and cultivated by such individual or by the members of such family with or without the aid of servants or hired labourers or of both, the allowance admissible under this clause shall, instead of such cost, be a sum equal to fifty per centum of the market value of the produce raised from such land;(2)any sum paid by him in the previous year on account of-(i)land revenue or rent;(ii)any local rate or cess including Education Cess, in respect of such land;(3)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 section 30 of the Bengal Money-Lenders Act, 1940;(4)any sum paid by him in the previous year as interest on any loans taken by him under the AgriculturistsÂ’ Loans Act, 1884, or the Land Improvement Loans Act, 1883, in respect of such land;(5)in respect of the maintenance of any irrigation or protective work or other capital assets the amount paid in the previous year on account thereof.Explanation. - "Maintenance" includes current repairs and includes also in the case of protective dykes and embankments all such work as may be necessary from year to year for repairing any damage or destruction caused by flood or other natural causes;(6)depreciation at the 'prescribed rate in respect of any irrigation or protective work or other capital asset constructed or acquired after the commencement of this Act 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)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 cattle to be reared thereon;(8)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;(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 such agricultural income from such land;(9a)[ any sum of allowance computed under sub-section (2)] [Clause (9a) was inserted by W.B. Act 16 of 1994.];(10)any other sum which may be prescribed.[* * * * * *] [Sub-section (2) which was inserted by W.B. Act 16 of 1994 was omitted by W.B. Act 10 of 1996.]
