Keyword(s):
Agricultural Income, Agricultural Income-Tax, Inspector of Taxes, Senior
Superintendent of Taxes, Firm, Partner, Partnership, Landlord, Total
Agricultural Income

An
Ac t
to provide for the imposition of a tax on agricultural income
WHEREAS it is expedient to impose a tax on agricultural income arising from lands
situated in the State of Assam:
It is hereby enacted as follows: –
CHAPTER I
Preliminary

  1. Short title. (1) This Act may be called the Assam Agricultural Income-tax Act,

  2. (2) It shall take effect from the 1st of April 1939.
    Historical Backgrounds:
    In the India’s first Income Tax Act of 1860, agricultural income was made taxable
    like any other source of income and no distinction was made between agricultural and
    non-agricultural income for taxation purpose.
    In 1886, when a regular Income Tax Act was passed agricultural income was
    exempted from Income tax.
    The Government of India Act of 1935, provided for the distribution of legislative
    powers between the federal legislature and the provincial legislature and by enumerating
    the tax on agricultural income in the provincial list under entry 41 of the Seventh
    Schedule, it was made a State subject.
    The Constitution of India retained the same provision in entry 46 of List II –
    State List, in its Seventh Schedule.
    Enacted in the year of 1939, the Assam Agricultural Income-tax Act has
    undergone several amendments from time to time. Extents: –
    This Act covers agricultural incomes arising from lands situated in the State of
    Assam.
  3. Definitions. – In this Act, unless there is anything repugnant in the subject or
    context –
    (a) “Agricultural income” means –
    (1) Any rent or revenue derived from land which is used for
    agricultural purposes, and is either assessed to land revenue in
    Assam or subject to a local rate assessed and collected by officers
    of the Government as such;
    (2) Any income derived from such land by –
    (i) agriculture, or
    (ii) the performance by a cultivator or receiver of rent in kind of
    any process ordinarily employed by a cultivator or receiver of
    rent-in-kind to render the produce raised or received by him fit
    to be taken to market, or
    (iii) the sale by a cultivator or receiver of rent-in-kind of the
    produce raised or received by him, in respect of which no
    process has been performed other than a process of the nature
    described in sub-clause (ii);
    Explanation. – Agricultural income derived from such land by the
    cultivation of tea means that portion of the income derived from the
    cultivation, manufacture and sale of tea as is defined to be agricultural
    income for the purposes of the enactments relating to the Indian Income-
    tax;
    (b) “Agricultural Income-tax” means the tax payable under this Act;
    (bb) “Inspector of Taxes or Agricultural Income-tax Inspector” means person
    appointed to be an Inspector of Taxes or Agricultural Income-tax Inspector
    under sub-section (2) of section 18;
    (c) “Senior Superintendent of Taxes”, “Superintendent of Taxes” or
    “Agricultural Income-tax Officer” means a person appointed to be a
    Superintendent of Taxes or Agricultural Income-tax Officer under sub-
    section(2) of section 18;
    (d) (1) Save as otherwise provided in this section, ‘previous year’ for the
    purpose of this Act means the financial year immediately preceding
    assessment year:
    Provided that in the case of agricultural income derived from a source
    newly coming into existence in the said financial year, the previous year shall be the period beginning with the date on which the source of income
    newly comes into comes into existence and ending in the same financial
    year.
    (2) “Previous Year” in relation to the assessment year commencing on
    the first day of April, 1989, means the period which begins with the date
    immediately following the last day of the previous year relevant to the
    assessment year commencing on the first day of April, 1988 and as on the
    31st day of March, 1989:
    Provided that where the assessee has adopted more than one
    period as the “Previous Year” in relation to the assessment year
    commencing on the 1st day of April, 1988 for different sources of his
    income, the “previous year” in relation to the assessment year
    commencing on the 1st day of April 1989 shall be reckoned separately
    in the manner aforesaid in respect of each such source of income, and
    the longer or the longest of the periods so reckoned shall be the
    previous year for the said assessment year.
    (3) Where the previous year in relation to the assessment year
    commencing on the 1st day of April, 1989 referred to in sub-clause (2)
    above exceeds a period of 12 months, hereinafter referred to as the
    “transitional previous year”, the provisions of this Act shall apply
    subject to the modifications specified in sub-clause (4) and (5) of this
    clause.

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