Section 6 in The Bengal Agricultural Income-Tax Act, 1944
6. Computation of Tax and Allowances under the head "Agricultural Income from Rent or Revenue". -
Agricultural income-tax shall be payable by an assessee under the head "Agricultural income from rent or revenue" in respect of all rent and revenue, including any Local Cess or Education Cess referred to in section 4 derived from land referred to in sub-clause (a) of clause (1) of section 2 included in his total agricultural income and received in the previous year, subject to the following allowances, namely :-(1)any sums 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;(2)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;(3)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;(4)in respect of the maintenance of any irrigation or protective work or other capital asset 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;(5)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;(6)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;(7)in respect of the cost of collection of such rent or revenue including the cost of maintenance of any katchari or other capital assets and any expenses of litigation, a sum equal to fifteen per centum of the total amount of rent or revenue which accrued to him in the previous year in respect of the land from which such rent or revenue is derived :Provided that in the case of an assessee who can produce his accounts audited and certified to be correct by an accountant, and at the option of such assessee recorded in writing the allowance shall be, instead of such sum, the actual cost of collection incurred during the previous year as determined by the Agricultural Income-tax Officer on the basis of such accounts, subject to a maximum equal to twenty per centum of the total amount of rent or revenue which accrued to him in the previous year in respect of the land from which rent or revenue is derived.Explanation. - "Accountant" in this proviso has the same meaning as in clause (iii) of sub-section (2) of section 58 and includes the Accountant-General, [West Bengal] [Substituted by the Indian Independence (Adaptation of Bengal and Punjab Acts) Order, 1948.], and any person auditing accounts under his direction and control :Provided further that the assessee, having once exercised the option to claim the actual cost on the basis of his accounts as the allowance admissible as aforesaid, shall not be entitled in any future year to claim instead the alternative allowance admissible except with the previous sanction of the Assistant Commissioner;(8)in the assessment made for each of the three financial years ending on the 31st March, 1945, the 31st March, 1946, the 31st March, 1947, respectively, in respect of the cost of collection of such rent or revenue and in addition to the allowance specified in clause (7), if the total amount of the rent or revenue received by the assessee in the previous year exceeds the total amount of rent or revenue which accrued to such assessee in the previous year by more than five per centum of such amount accrued, a sum equal to one-fifth of the amount by which such amount received exceeds such amount accrued;(9)when rent derived from such land is rent-in-kind the cost incurred by the assessee-(i)in performing any process contemplated in item (ii) of sub-clause (6) of clause (1) of section 2 for rendering the produce which comprises such rent-in-kind fit to be taken to market;(ii)in transporting such produce to market;(iii)in maintaining in good repair any agricultural implements or machinery and in providing for the upkeep of cattle for the purposes of such process or transport;(10)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.
