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Rule 7a income from rubber

Ramees (CA Final Student) (87 Points)

17 February 2014

Hello everyone,

Our Client is a rubber planter. His Income frome sale of Rubber Sheets is Rs.15 Lakhs for the financial Year 2012-13. He has other taxable incomes too.

My question is : -

Whether Rule 7A is applicable for him (As he is not a registered dealer, but only a planter) And accordingly Rs.525,000.00 taxable as business income?
If yes, whether Balance Rs.975,000.00 is added to Gross Total Income for Income Tax Purpose?

Please Help...

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1 Replies

Dipak Mane (Audit Assistant) (24 Points)
Replied 18 February 2014

Originally posted by : Ramees

Hello everyone,

Our Client is a rubber planter. His Income frome sale of Rubber Sheets is Rs.15 Lakhs for the financial Year 2012-13. He has other taxable incomes too.

My question is : -

Whether Rule 7A is applicable for him (As he is not a registered dealer, but only a planter) And accordingly Rs.525,000.00 taxable as business income?
If yes, whether Balance Rs.975,000.00 is added to Gross Total Income for Income Tax Purpose?

Please Help...

Dear Ramees

The following format may be useful to your querry

Total income before deduction U/s 33AB = Rs. 15 lakhs

Less : Deduction U/s 33 AB - Lower of following

Amount Deposited with NABARD/ other bank As per scheme = NIL

40 % of PGBP ( 15 lakh*40 %) = 6 lakh

Total Income = 15 lakh

Less : As per rule 7B ( 15 lakh*35%) = 5.25 Lakh

Less : B/f Business loss only if any = Nil

Taxable total income = 9.75 lakhs

Note above calculated rs. 15 lakh incoime from Rubber business is after allowing all relevaent business expenses as per normal provisions of Income tax act 1956.

Regards

Dipak