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INCOME FROM DAIRY FARMING

RAJ KUMAR (FINANCE MANAGER) (1393 Points)

21 March 2010

HELLO FRIENDS, IN CASE OF DAIRY FARMING BUSINESS IF SOMEONE PURCHASES ANIMALS THEN WHETHER

FULL DEDUCTION IS ALLOWED

AND IF THERE IS A PROFIT ON THE SALE OF THE LIVESTOCK

WHAT IS THE TREATMENT?

PLS TELL.

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4 Replies

CA Ravish Trivedi (The Possibilities are Infinite...) (772 Points)
Replied 21 March 2010

profit from sale of livestock is exempt from capital gain in this case. had it been assessee would hold livestock as stock in trade then it will be taxable under income from business profession

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sudhir rawal (B.COM/PCC/ARTICLE/'O'LEVEL) (314 Points)
Replied 22 March 2010

Originally posted by : RAJ KUMAR
	HELLO FRIENDS, IN CASE OF DAIRY FARMING BUSINESS IF SOMEONE PURCHASES ANIMALS THEN WHETHER FULL DEDUCTION IS ALLOWED AND IF THERE IS A PROFIT ON THE SALE OF THE LIVESTOCK WHAT IS THE TREATMENT? PLS TELL.

you are here tell us that assessee having dairy farming business, from here it's not clear that the purchase or sell of animals are covered under your business or not

so raveesh at his side totally right

that if it's business than no capital gain and it taxable under business head

and if it's not your daily business then it must comply the conditions of section 45 for capital gain

vivek singhal (Chartered accountant) (79 Points)
Replied 23 March 2010

Dear Raj Kumaer,

Income from sale of live stock is taxable under head business income and this income is derived such as Sale Price of Live Stock minus Cost Price of Live Stock.