UGC NET COMMERCE December 2018 Q36
0. Which one of the following is agricultural income under Income Tax Act?
- A
Income from the sale of replanted trees where denuded parts of the forest are replanted and subsequent operations in forestry are carried out.
- B
Income from dairy farm, poultry farm, etc.
- C
Dividend from a company engaged in agriculture.
- D
Income from the land used for storing agricultural produce.
- Option : A
- Explanation : Examples of Agricultural Income
The following are some of the examples of agricultural income:
∎ Income derived from sale of replanted trees.
∎ Income from sale of seeds.
∎ Rent received for agricultural land.
∎ Income from growing flowers and creepers.
∎ Profits received from a partner from a firm engaged in agricultural produce or activities.
∎ Interest on capital that a partner from a firm, engaged in agricultural operations, receives.
Examples of Non-Agricultural Income
The following are some of the examples of non-agricultural income:
∎ Income from poultry farming.
∎ Income from bee hiving.
∎ Any dividend that an organization pays from its agriculture income.
∎ Income from the sale of spontaneously grown trees.
∎ Income from dairy farming.
∎ Income from salt produced after the land has flooded with sea water.
∎ Purchase of standing crop.
∎ Royalty income from mines.
∎ Income from butter and cheese making.
∎ Receipts from TV serial shooting in farm house.
