If Mr.X is a farmer and he outsourses packaging of grains to Mr.Y.(packaging is necessary to make product marketable) For this process Mr X pays 300000 to Mr.Y
1)Is 3000000 taxable in the hands of Y
-Y is also farmer
-Packaging is business of Y
-Packaging is not his business
For Mr. X -
As per Rule 7 - Total Agriculture Income - Exempt
For Mr. Y -
How can Packing is an Agricultural Bussiness?
Taxable irrespective of the fact whether assesse is a farmer or not.. For exemption we have to the purpose not the assesse..
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