Agriculture income refers to revenue earned from agricultural operations such as cultivation of crops, horticulture, farming, plantation activities, and related agricultural processes. It may also include income from the sale of produce, rent or revenue derived from agricultural land, and profits from farming-related activities. Under the Income Tax Act, 1961, agriculture income is exempt from tax in India, subject to certain conditions. However, it must be properly calculated, documented, and disclosed if combined with non-agricultural income for rate purposes. The income is considered agricultural only if it arises from land situated in India and is used for agricultural purposes. Proper accounting, record-keeping of land details, crop yields, and revenue from produce is essential for compliance and to claim exemptions. Misclassification of income or failure to maintain records can attract scrutiny or penalties from tax authorities. Professional guidance is often recommended to determine eligibility, calculate net agricultural income, and ensure accurate disclosure in tax filings. Recognizing agriculture income correctly helps taxpayers maximize exemptions while maintaining transparency and compliance with statutory requirements.