Hello everyone,
My question revolves around the taxability of shrimp farming. The assessee purchases seedlings (hatched shrimps) and allows them to grow in man made fresh water ponds created for this purpose. The the shrimps are allowed to grow with their growth conditions monitored very closely. At the end of 90 days they shrimps reach the harvest stage. This is when they are sold of to the highest bidder in the market. This is their line of work.
This does not seem to logically fall under the definition of agricultural income as per the income tax act, so definitely the income is taxable right? My client is of the view that there is a relaxation on tax rate specific to this line of business. Any ideas about this?
Would be very grateful for any insights on this.
Thanks,
CA Ramakrishnan V
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shrimp farming
Replies (2)
KARRA JAYABHYARATHI vs. INCOME TAX OFFICER ITAT, HYDERABAD ‘B’ (SMC) BENCH
Please refer above case law, if applicable to you
I have serched on internet
There is no relaxation under Income tax act. Its taxable under IT, but some state governments had given tax relief under sales tax or VAT regime.
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