Is agricultural income taxable for NRIs in India?

Agricultural income earned in India is generally exempt from income tax in India, and this exemption applies to NRIs as well, not only to residents. So genuine income from growing crops on your land in India is normally not taxed in India. Two important catches to keep in mind. First, even though agricultural income is exempt, it can be used for 'rate purposes' if you also have other taxable Indian income above the basic limit, which can push that other income into a higher slab. Second, and this is the one NRIs often miss, the country where you are a tax resident may still tax your worldwide income, including Indian farm income, because many countries do not give the same agricultural exemption India does. So it may be tax free in India but taxable abroad. Also, rent from leasing out land and capital gains from selling land are not treated as agricultural income and are taxed differently. Please confirm with a CA in India and a tax advisor in your country of residence, since this depends on the tax treaty and your residency. General information only.