I have a query with regard to agricultural income of a company. The Company has received royalty for agricultural activities. Whether the same is exempt? Also the Company has received various subsidies and licence entitlements for export of vegetables and fruits. Whether these are taxable? Also rule 2 of Part IV in the finance act says that agricultural income shall be computed as if it were income chargeable ti income tax under the head 'profits and gains from business or profession'. Does this mean that royalty and all other incomes have to be given exemption?
13 November 2013
Royalty will be taxable as it is not the agriculural income moreover agricultural income is added for rate purpose only it is exempt under section 10
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