Is Agricultural Income Taxable for NRIs?

I receive agricultural income from family-owned land in Maharashtra. While filing my ITR, my tax advisor stressed the importance of maintaining supporting documents such as land ownership records and proof of agricultural activities. Even if the income is exempt, proper documentation can be helpful if questions arise later.

I had a similar situation in Canada. My accountant asked whether the income was actually from agricultural activities or simply rent from leasing the land. The tax treatment can differ depending on the arrangement, so it's worth reviewing the agreement carefully before filing.

I'm based in the UK and have agricultural land in Punjab. My CA explained that genuine agricultural income earned from agricultural operations in India is generally exempt from tax, even for NRIs. However, I still disclosed the details in my ITR where applicable. The nature of the income was important, so I kept records of the lease and land documents.