agricultural income

For Mr. X -
As per Rule 7 - Total Agriculture Income - Exempt

For Mr. Y -
How can Packing is an Agricultural Bussiness?
Taxable irrespective of the fact whether assesse is a farmer or not.. For exemption we have to the purpose not the assesse..

Yes....

Mr. Y's income is Taxable for above said "Packaging". 

Pallav Sir,
Here packing is done for making product marketable.

The income from the process employed to render the product fit to be taken to the market would be agricultural income.(sec 10)

On the base of this statement please conform Y is liable or not ???

Dear Ms. Deshmukh,
You are absolutely right but this applies on Mr. X not on Mr. Y.
because here Mr. X's agriculture produce is involved and as per the rule 7 if the process is mandatory for sale of agricultural produce then the *income generated from such sale *after process* is total agricultural income* which is Exempt under section 10(1).
In short ti make agricultural Income you have to sale agricultural produce in raw form (i.e. sale as such) without any further process but if process is mandatory or necessary fir sale then also Exempt.

Y is Liable..

Thank you so much...😊😊