07 November 2016
if an assessee has agricultural income from selling tea leaves is below Rs 10 lakhs per annum, is the whole income can be treated as exempt agricultural income u/s 10 ? or there can be another tax treatment u/s 33AB?
please guide.
07 November 2016
As per Section 33AB, if assessee has deposited amount in Tea development fund with NABARD before filling of ITR, then he can claim deduction of specified amount.
As per Rule 8, After claiming deduction u/s 33AB 60% is exempted as agriculture income u/s 10 and 40% is taxable as non-agriculture income. Hence whole amount of income will not be exempted u/s 10.
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