Agricutural Income
This query is : Resolved
22 September 2010
Sale of Milk to Dairy is Agriculture Income or Taxable Income
22 September 2010
Dear Sir,
Agriculture income is exempt under the Indian Income Tax Act. This means that income earned from agricultural operations is not taxed. The reason for exemption of agriculture income from Central Taxation is that the Constitution gives exclusive power to make laws with respect to taxes on agricultural income to the State Legislature.
But Dairy farming is not an agricultural income, it is taxable income. Please refer to the below mentioned cases:-
In the case of AIR 1956 SC 522, 1956 59 ITR 529 SC, the decision was given by hon’ble Bench: B P Banerjee, S Dass, V B Eradi
“Whether on the facts and circumstances of the case, the income from the sale of milk received by the assessee during the accounting year is not 'agricultural income' within the meaning of the Income-tax Act."
Refer case log on to: - http://www.indiankanoon.org/doc/972395/
For more info:-
(1)
http://taxguru.in/income-tax/income-tax-treatment-taxability-of-agricultural-income.html
(2)
http://indiantaxguide.wordpress.com/2009/05/08/agricultural-income/
Regards,
Agriculture income is exempt under the Indian Income Tax Act. This means that income earned from agricultural operations is not taxed. The reason for exemption of agriculture income from Central Taxation is that the Constitution gives exclusive power to make laws with respect to taxes on agricultural income to the State Legislature.
But Dairy farming is not an agricultural income, it is taxable income. Please refer to the below mentioned cases:-
In the case of AIR 1956 SC 522, 1956 59 ITR 529 SC, the decision was given by hon’ble Bench: B P Banerjee, S Dass, V B Eradi
“Whether on the facts and circumstances of the case, the income from the sale of milk received by the assessee during the accounting year is not 'agricultural income' within the meaning of the Income-tax Act."
Refer case log on to: - http://www.indiankanoon.org/doc/972395/
For more info:-
(1)
http://taxguru.in/income-tax/income-tax-treatment-taxability-of-agricultural-income.html
(2)
http://indiantaxguide.wordpress.com/2009/05/08/agricultural-income/
Regards,
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