When agriculture income is taxable?

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..... When agriculture income is taxable?
Query (Issue) Started By: - ramesh bohra Dated:- 30-4-2010 Last Reply Date:- 9-5-2010 Income Tax
Got 2 Replies
Income Tax
agriculture income if we have agri. land and we growing crops and sell as following way then income is exempted or not 1. we sell agri. crop in indian market 2 we export agri crop in same raw stage 3 we process some chemical fo .....

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..... r preserve crop we export it it will exmpt or not 4 we have crop and we make juice and then export it then what will happen Reply By Surender Gupta: The Reply: Making Juice or processing the crop otherwise alterer the nature of agriculture produce. Sale of product after processing is resulting into profit (or loss) from agriculture as well as business activity. For this purpose you may refer to ru .....

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..... le 7, 7A, 7B or 8 of the Income Tax Rules, 1962. Export of the goods obtained after processing of crop or sale in domestic market is irrelevant for the purpose of determining the nature of income. Reply By DEV KUMAR KOTHARI: The Reply: I agree with reply of Mr. Surendra Gupta. In hands of land onwer agricultural income,a s defined in IT ACT will be exempt. In agricultural produce is sold after app .....

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..... lying minimum processes which are required to renderr theproduce to be taken to market, it will result into agricultural income. In case more processes are applied then agricultural and business income will have to be determined as per applicable Rules. Depending on situation of factory, products and processes employed, time of installation of facilities etc. there may be some relief applicable u .....

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..... nder Chapter III and VIA which need to be checked. Check, whether there is any agricultural income tax in the state where agricultural land is situated.Agricultural income tax is imposed by the State Government. For detailed discussion better you consult your tax consultants.
Discussion Forum - Knowledge Sharing .....

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