dear Experts
please reply to this query
the following is the situation
1.A rubber plantation is given on lease for 5 years for 29 lakhs rupees.
2. the rubber plants will be cut after the period of lease
3. the plantation includes facilities for making rubber sheets: machines and buliding
please reply whether the above situations (any) amount to agriculture income or else how will be tax calculated
if possible quote relevant case laws and judgement, sections
thanks in advance
As per Rules 7A of IT act ....
7A.[(1) Income derived from the sale of centrifuged latex or cenex or latex based crepes (such as pale latex crepe) or brown crepes (such as estate brown crepe, remilled crepe, smoked blanket crepe or flat bark crepe) or technically specified block rubbers manufactured or processed from field latex or coagulum obtained from rubber plants grown by the seller in India shall be computed as if it were income derived from business, and thirty-five per cent of such income shall be deemed to be income liable to tax.]
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