Farmer income from cow milk

Taxable.                                    .

YES IT IS TAXABLE INCOME UNDER INCOME HEAD INCOME FROM BUSINESS

The income from agricultural income is exempt under section 2(1) of Income tax act. But it is necessary to understand that whether income from dairy farming constitutes agricultural income or not.
                                                    
In order to consider an income as agricultural income certain points have to be kept in mind:
1. There must be a land
2. The land is being used for agricultural operations.
3. Agricultural operation means that efforts have been induced for the crop to sprout out of the land.

Considering above mentioned points we can say that  activities not involving any basic operation on the land would not constitute agriculture merely because they have relation to or connection with the land ( Madras High Court in B. Nagi Reddi v CIT)

Therefore Income from Dairy farming is not exempt under the Income tax act 1962.

Income from milk is a dairy business and hence must be taxable under PGBP head.

Can you explain PGBP head in brief?