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
CAclubindia
