I have one doubt on agricultural income for which I dont have a clear answer. Can anyone clarify my below doubts?
1.Suppose I have rubber plantations and into the activity of growing rubber and selling the rubber latex(white fluid extracted from rubber trees) to rubber manufacturer. What is the tax implication on this business. If I have to pay tax, can I avoid tax by forming a Trust? Please guide me experts.
Actually along with Rubber plantations there is business of growing, processing cashews and then selling to the end consumers. Now what will be the tax implication?
11 February 2011
Here also you are involved in Agricultural Process and Non-agricultural becuase you are doing processing of cashwes therefore income received form cashew business will be segregated into two parts with 60:40 ratio where 60% is agricultural income and 40% is non-agricultural income.
But if cashews cannot sale in the market without processing(means processing is essential activity) then whole income will be agricultural income.
Now, if you treat this 40% as non-agricultural income then you will have to follow particla integration for tax computation.
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