Income tax of tea industry
This query is : Resolved
09 January 2016
I Have a Tea factory in which 10% of the tea leaves are grown in my own garden and 90% are purchased from market, which is further processed to manufactured tea bags. what will the taxation of the income generated from the tea bags as it includes the agricultural product from my own garden.
it is a company who is manufacturing the tea bags.
it is a company who is manufacturing the tea bags.
09 January 2016
90% of purchased tea leaves will be treated totally as business income;
In case of 10% of the tea leaves are grown and manufactured --> 60% of such income is treated as agriculture and 40% is treated as business income.
You may also refer Rule 8 of the Income Tax Rules, 1962.
In case of 10% of the tea leaves are grown and manufactured --> 60% of such income is treated as agriculture and 40% is treated as business income.
You may also refer Rule 8 of the Income Tax Rules, 1962.
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