Can government employee earn from agriculture?

A government employee can’t run a business but he is not prevented from making investments, earn from agricultural land, earn from his hobbies or have occasional income by his artistic or literary work.

How can a government employee earn extra income?

Government servants are prohibited to earn money by business and commerce. They are, however, allowed to earn money through many other sources like, Income from renting of their property. Investment in shares.

Can government employees do side business?

No, A government employee is not allowed to run a private business, neither is he allowed to work anywhere else as a part-time or full-time employee. This is against government rule and hence person who is found can be charged for breaking the law.

Is agricultural income taxable for govt employees?

Under Section 10(1) of the Income Tax Act, 1961, any income generated from any agricultural activities are exempted from being taxed by the Government. However, agriculture income can be considered for rate purposes provided the net agriculture income is more than Rs.

Can a government employee have other source of income?

No. You can not work for gain outside your employment, 2. Even for working voluntarily you shall have to take permission from appropriate authority since you are working with a Govt.

How much agricultural income is exempt from income tax?

If a farmer’s income is less than Rs. 5,000 or if the total income minus the agricultural income is less than the basic exemption limit which is Rs. 2.5 lakh for a person below the age of 60 years and Rs. 3 lakh for an individual aged 60 years and above, then the income generated will be exempted from being taxed.

Is agricultural income exempt?

As per Section 10(1) of the Income Tax Act, 1961, agricultural income is exempted from taxation. The central government cannot levy tax on the agricultural income received.