Taxability of income from poultry

Save Share

This query is : Resolved

Quick Summary

Income generated from producing and selling milk from cows or buffaloes, whether raw or as value-added products, is taxable under the Income Tax Act. This income is typically not classified as agricultural income, even if related to livestock. While some specific circumstances involving agricultural land might allow for certain exemptions or clubbing of income, the general rule is that dairy farming profits are subject to income tax.

UBEIDULLA

UBEIDULLA (Querist)
Follow

25 April 2022 A client is having cows and selling milk procured from them. Can the experts kindly tell the taxability of this income...

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

25 April 2022 Income from producing milk from cows/buffalo & selling it in any manner-raw milk or value added products is Taxable under IT act.

UBEIDULLA

UBEIDULLA (Querist)
Follow

25 April 2022 Thank you for your reply sir. Will it not come under agriculture? Is it fully taxable?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

25 April 2022 No. it will not be agricultural income.
Only in case of individuals having agricultural land and as such activity over it, including milk of kettle depending on the agriculture land, it is usually clubbed in it.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now