Category Archives: Agriculture Income Tax

Rule 7: Income which is partially agricultural and partially from business

Composite income partially derived from agriculture, is differentiated in the manner indicated in Rule 7 of the Act. A major area of overlap between agricultural and non-agricultural income is that of agro-processing. Courts have held that agricultural operations are those which directly involve spontaneous growth from the soil, like ploughing, harvesting etc. This means that… Read More »

Rule 7B(1A): Treatment of Income derived from the coffee grown, cured roasted and grounded by the seller in India

Rule 7B(1A) deals with Income derived from the sale of coffee grown, cured, roasted and grounded by the seller in India, with or without mixing chicory or other flavoring ingredients. In this case, 60% of income of assessee from such business will be treated as agricultural income and is exempt and balance 40% of income is… Read More »