Income from Agricultural Operations
- Agriculture (Sale of Agricultural Produce)
- Income from any activity which is normally employed to make product fit to market (Like storing goods in sacks)
- Sale of goods by cultivator/receiver of rent in kind on which only marketing process undertaken as per (2)
INCOME OF LANDLORD CAN ALSO BE FROM AGRICULTURAL OPERATIONS
QUESTIONS
Q1
Mr A grows rice in his farm and sells it in Market for Rs 40000
View answer
It is Agricultural Income as it is Income derived from agricultural operations
Q2.
Mr A gives contract to Mr B for packing rice in sacks,How is B’s income taxable.
View answer
It is Agricultural Income as it is derived from Income from any activity which is normally employed to make product fit to market
Q3
Mr A sells packed sacks of rice in Market
View answer
It is Agricultural income as it is Sale of goods by cultivator/receiver of rent in kind on which only marketing process undertaken as per (2)