14 May 2020
Please solve this problem. Coimbatore cotton mills is engaged in the business of growing cotton and manufacturing thread. For the financial year 2019-20, the company manufactured 5000 spools of thread and sold them for value of 60,00,000. They used 2000 bales of cotton grown by them. The market price per Bale of cotton is 1500. Cultivation expenses incurred for producing 2000 bales of cotton was 38,00,000. Determine the business income chargable to tax for A.Y 2020-21.
16 May 2020
Agricultural income is loss of 8 lacs after deducting 30 lacs market price from 38 lacs cultivation cost. Manufacturing cost and other expenses not given to calculate business income.
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