An assessee takes land on agriculture from farmmer and engages in production activities. The same produced goods are further manufacture and sold in to the market. Whether a non farmmer can enter in to such activities? Whether the income from activity of production will amount to agricultural income?
3 Replies
Max Payne
(employed)
(2574 Points)
Replied 02 September 2009
Hi u can check rule 7.
It allows you to take (a)the fair market value of the produce or (b) the cost of making such agricultural produce, whichever is higher as your agricultural income, and the difference between the sale proceeds of the manufactured item (like sugar) and the option chosen (say cost of sugarcane) is taken as business income.
U can refer rules 7A, 7B and 8 if the assesse is growing Rubber, Coffee, or tea.
But i think it may be only rule 7 which is applicable to you.
Preeti
(Accountant)
(27 Points)
Replied 02 September 2009
Can anyboday tell that if an exporter gets DEPB & VKGUY income in their business, is it exempted from the tax????
shivraat yadav
(Account Assistent)
(124 Points)
Replied 04 March 2011
how count the agricultrue income plz
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