Section 4(1) in The Jammu and Kashmir Agricultural Income Tax Act, 1962
(1)The agricultural income mentioned in section 3 shall deemed to be [the sum received, accrued or arisen] [Sub-section (1) substituted by Act No. XVIII of 1966.] in the previous year on account of agricultural income after deducting an amount equivalent to twenty-five per cent of such income ;Provided that in the case of an assessee who produces complete accounts which are found to have been properly maintained by the assessing authority, the following amounts shall be deducted if so requested by the assessee, instead of the amount of 25% mentioned in this' sub-section(a)the sum actually paid in the previous year as revenue to the Government or as rent to the landlord or any local cess or rate, in respect of the land from which such agricultural income is derived ;(b)interest paid on any amount borrowed and actually spent on any capital expenditure incurred exclusively for the benefit of the land, from which such agricultural income is derived ;(c)any interest paid on any mortgage or any other kind of debt or any interest paid on other capital charge incurred exclusively for the purpose of acquiring the property from which such agricultural income is derived;(d)depreciation at the rate of 5% on any machinery or plant purchased or acquired exclusively for the benefit of the land from which agricultural income is derived or for the purpose of deriving such agricultural income therefrom :Provided that the aggregate of all depreciation allowance made under this act shall in no case exceed the original cost of such machinery or plant of the assessee ; and(e)any other expenditure incurred by the assessee not being in the nature of capital expenditure or personal expenditure, laid out wholly or exclusively for the purpose of deriving such agricultural income from such land.]
