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Whether agriculture income or not

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anand achu

32 Points Posted on 03 September 2021

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

Replies (2)

Quick Summary

This discussion explores whether income generated from a 5-year lease of a rubber plantation, which includes the cutting of rubber plants and processing facilities, qualifies as agriculture income. The response references Rule 7A of the IT Act, suggesting that income from processed rubber products is treated as business income, with 35% deemed taxable.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121551 Points Posted on 03 September 2021

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.]