What is exempted income? As per Section 10 to 13A, certain incomes are either totally exempt from tax or exempt up to a certain limit. Such incomes which do not form part of total income may also called incomes exempt from tax. Exemptions = Tax free income Income forming a part of total income on… 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.” (adsbygoogle = window.adsbygoogle || []).push({}); For some or the other reason, the owner of the land may not… 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 »
Under the Income Tax Act, 1961 of rule 8 deals with Income derived from sale of tea grown and manufactured by the seller in India. Here, neither total income will be taken as agricultural income nor as business income. The total Income from sale of tea grown and manufactured divides into 40% of Business Income and 60% of… Read More »
Capital gains arising on the transfer of land used by an individual or his parents for agricultural purposes for a period of two years immediately preceding the date of transfer is exempt from the tax if the individual assessee has purchased another agricultural land within a period of two years from the date of such… Read More »
As per Section 10(37), in case of an Individual or Hindu undivided Family, capital gain arising on transfer by way of compulsory acquisition of urban agricultural land is not chargeable to tax from the Assessment year 2005-06 if such compensation is received after April 1, 2004 and the agricultural land was used by the assessee… Read More »