What is the legal provision for exemption of agricultural income?

Agricultural income is fully exempt from tax under Section 10(1) of the Income Tax Act, 1961. The Supreme Court, in the case of CIT v. Raja Benoy Kumar Sahas Roy (1957), defined agricultural income as rent or revenue derived from land used for agricultural purposes. This includes income from growing crops, rearing livestock, and other agricultural operations. Finance Act 2025 has not amended this provision.