Agricultural Income

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This discussion addresses the business income calculation for Coimbatore Cotton Mills for the financial year 2019-20. It details the sale of manufactured thread and the use of self-grown cotton, considering cultivation expenses and market prices to determine the agricultural income and the taxable business income for Assessment Year 2020-21.

Arun Kumar

Arun Kumar (Querist)
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14 May 2020 Please solve this problem.
Coimbatore cotton mills is engaged in the business of growing cotton and manufacturing thread. For the financial year 2019-20, the company manufactured 5000 spools of thread and sold them for value of 60,00,000. They used 2000 bales of cotton grown by them. The market price per Bale of cotton is 1500. Cultivation expenses incurred for producing 2000 bales of cotton was 38,00,000. Determine the business income chargable to tax for A.Y 2020-21.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 May 2020 Agricultural income is loss of 8 lacs after deducting 30 lacs market price from 38 lacs cultivation cost.
Manufacturing cost and other expenses not given to calculate business income.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 May 2020 Business income gross will be 30 lacs.

Arun Kumar

Arun Kumar (Querist)
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16 May 2020 Thank you so much sir.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 May 2020 Welcome.............
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