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INCOME FROM DAIRY FARMING

RAJ KUMAR (FINANCE MANAGER) (1393 Points)

21 March 2010  

HELLO FRIENDS, IF ANYBODY HAS INCOME FROM DAIRY FARMING

IN THIS CASE WHETHER LIVESTOCK IS HIS CURRENT ASSET OR FIXED ASSET

AND IN ITR 4 WHAT SHOULD BE ITS NATURE OF BUSINESS

WHICH CODE I HAVE TO USE?

PLS. HELP ME

IS IT COMPULSORY TO MAINTAIN THE BALANCE SHEET

MY GROSS RECEIPTS ARE RS. 200000.  FROM THE SALE OF MILK AND LIVESTOCK.


 4 Replies

Amir (Learner) (4011 Points)
Replied 21 March 2010

Dear Sir,

Cattle/Livestock is treated as a special item & instead of depreciation the amount spent on them is allowed as follows u/s 36-

(vi)   in respect of animals which have been used for the purposes of the business or profession otherwise than as stock-in-trade and have died or become permanently useless for such purposes, the difference between the actual cost to the assessee of the animals and the  amount, if any, realised in respect of the carcasses or animals;

For business/profession ITR IV will be required.

Regarding code - I m not sure but I think u can use "others (0124)" under Manufacturing sector 

Books as per Sec 44AA will be requied if ur gross receipts are in excess of Rs. 10 Lakhs or Ur Income from business exceeds Rs. 1.20 Lacs......

6 Like

Santhosh Poojary (SIEMPRE AHÍ PARA TI) (15587 Points)
Replied 22 March 2010

THANKS

Rajat Singhal CA,CS,CFA (Senior Manager (F&A)) (249 Points)
Replied 22 March 2010

Dear Amir Bhai, you are absolutely correct as usual....

One of our client is also into the same business and he is using others - 0124.

Avinash Singh (Article) (69 Points)
Replied 29 March 2014

 sir please provide detail about section 36 regarding special item and its treatment and if a person runs a business of sole propriotership then what will the treatment regarding livestock


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