As per Income Tax Act, 1961– (A) Basic conditions (Complete Any of One condition) (i)He stays 182 Days in India in the previous year. OR (ii)He stays 60 or more days in India in the previous year AND has been in India for 365 days or more in the 4 previous years immediately preceding the… Read More »
A Hindu Undivided Family is said to be resident in India in any previous year where the control and management of whole of its affairs is situated in India and also the karta of the family also situated within India in the previous year because it is the Karta who control and manage the family.… Read More »
Normally the term ‘Assessee’ is considered as one who is supposed to pay tax. However, its advisable to understand complete meaning of the term as envisaged under the Income Tax Act, as above. To better understand the term assessee based on above definition, we need to understand the following as well: Normal/ Ordinary Assessee any… Read More »
The term ‘non-resident Indian’ has been defined in S. 115C- 1. an individual, being a citizen of India 2. A person of Indian origin, who is not a resident. As Per Income Tax Act 1961 “Person of Indian origin” includes: A person shall be deemed to be of Indian origin if he or either of his… Read More »
“Rent can be defined as a payment in cash or in kind which the owner of the land receives from another person in consideration of a grant of a right to use the land for certain period.” For some or the other reason, the owner of the land may not perform agricultural operations by himself,… Read More »
The income tax Act, 1961 enumerates in S. 10, the items of income which are exempt from tax. Agriculture Income is exempt from tax if it comes within the meaning of “Agricultural Income”. What is exempted income? As per S. 10 to 13A, certain incomes are either totally exempt from tax or exempt up to a… Read More »
In respect of rubber manufactured from rubber plants grown by the seller in India the respective percentages are 35% and 65% i.e., 35% is business income and balance 65% of income shall be treated as agricultural income. Rule 7A: Growing and manufacturing of Rubber in India Income derived from the sale of centrifuged latex or… Read More »
Rule 7B deals with Income from manufacture of coffee. Any income which is derived from the sale of coffee grown and cured by seller in India shall be treated as it was income derived from business and 25% of such income shall be liable to tax. Any income which is derived from the sale of… Read More »
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) 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 »