topic agricultural income jan26

a) ₹ 5,42,000

b) ₹ 5,42,500

c) ₹ 4,55,000

d) None of the above

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2. Mr P grows sugarcane and uses it for manufacture of sugar in his factory. 30% of the sugarcane produced has been sold for ₹ 10 lakhs and the cost of cultivation of such sugarcane has been ₹ 5 lakhs. The cost of cultivation of balance 70% sugarcane has been ₹ 14 lakhs and its market value is ₹ 22 lakhs. ₹ 1.5 lakhs was incurred on manufacturing sugar from the balance 70% produce and the sugar so manufactured and sold for ₹ 25 lakhs. Compute Mr P’s business income:

a) ₹ 1.5 lakhs

b) ₹ 3 lakhs

c) ₹ 2.25 lakhs

d) None of the above

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3. Which of the following would be agricultural income?

a) Income from breeding of livestock

b) Income from poultry farming

c) Rent received from land used for movie shooting

d) Rent received from land used for grazing of cattle required for agricultural activities

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4. The proportion of agricultural and business income in case of income derived from sale of coffee grown and cured by the assessee in India is

a) 65% and 35%, respectively

b) 75% and 25%, respectively

c) 60% and 40%, respectively

d) 70% and 30%, respectively

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5. Mr Harini earned income of ₹ 4,00,000 from sale of tea grown and manufactured in Shimla. Income from sapling and seedling grown in nursery at Cochin is ₹ 80,000. The basic operations were not carried out by her on land. Her agricultural income is

a) ₹ 4,80,000

b) ₹ 4,00,000

c) ₹ 2,40,000

d) ₹ 3,20,000

None

6. Mr Prem earned income of ₹ 22 lakhs from manufacture and sale of coffee grown, cured, roasted and grounded by him in India. The business income chargeable to tax in his hands would be

a) ₹ 8,80,000

b) ₹ 5,50,000

c) ₹ 13,20,000

d) ₹ 16,50,000

None

7. Mr Anay (aged 25) has agricultural income of ₹ 2,10,000 and business income of ₹ 2,35,000. Which of the following statement is correct?

a) Agricultural income always has to be aggregated with business income for rate purposes

b) No aggregation is required since business income which constitutes his total income, is less than basic exemption limit

c) No aggregation is required since agricultural income is less than basic exemption limit

d) Agricultural income is exempt u/s 10(1) but the same has to be aggregated with business income, since it exceeds ₹ 5,000

None

8. During PY 2024-25, Mr Samar, a non-resident, received ₹ 75,00,000 on account of sale of agricultural land in Mauritius. The money was first received in Mauritius and then remitted to his Indian bank account. Is the sum taxable in India?

a) No, as agricultural income is exempt u/s 10(1).

b) No, as the income has accrued and arisen outside India and is also received outside India.

c) Yes, since it is remitted to India in the same year.

d) Yes, as agricultural income earned outside India is not exempted in India in the hands of a non-resident.

None

a) (i) and (iii)

b) (ii) and (iii)

c) (i) and (iv)

d) (i), (ii) and (iv)

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10. Income derived from farm building situated in the immediate vicinity of an agricultural land (not assessed to land revenue) would be treated as agricultural income if such land is situated in:

a) an area at a distance of 3 kms from the local limits of a municipality and has a population of 80,000 as per last census

b) an area within 1.5 kms from the local limits of a municipality and has a population of 12,000 as per last census

c) an area within 2 kms from the local limits of a municipality and has a population of 11,00,000 as per last census

d) an area within 8 kms from the local limits of a municipality and has a population of 10,50,000 as per last census

None

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Topic - Agricultural Income

Topic -
Agricultural Income