Agricultural income is exempt from income tax. However, the Income-tax Act specifies how such income is to be indirectly taxed. The term for this is "partial integration of agricultural and non-agricultural income., Since it is not included in a person`s total income, agricultural income is not taxable under Section 10 (1) of the Income Tax Act. However, if agricultural revenue surpasses Rs 5,000 per year, the state government may collect a tax. The money is classified as a recognised source of income and consists mostly of income from agricultural land, structures on or related to agricultural property, and commercial produce from agricultural land.