| Question And Answer | |
|---|---|
| Subject: | WHETHER DAIRY INCOME (MILK FROM COW) TAXABLE UNDER INCOME TAX? |
| Category: | Income-Tax |
| Querist: | KARAN SHAH |
| Answered by: | Research Team |
| Tags: | Agricultural Income, Dairy income |
| Date: | May 28, 2021 |
WHETHER DAIRY INCOME (MILK FROM COW) TAXABLE UNDER INCOME TAX ACT OR EXEMPT UNDER AGRICULTURE INCOME.
THE ASSESSEE HAS 100 ACRE OF LAND AND UNDERTAKES AGRICULTURE ACIVITY (GROWING CROPS). THE ASSESSEE ALSO HAS COWS AND SELLS MILK.
PLEASE ADVISE ON TAXABILITY OF MILK INCOME WITH SUPPORT OF ANY COURT JUDGEMENT IF ANY.
Only agricultural income is exempt u/s 2(1A) read with section 10 (1) of the Act. Dairy income (Milk from Cow ) is taxable . In State of Orissa v. Ram Chandra Choudhury (1962) 46 ITR 246 (Orissa ) (HC) applying the ratio laid down by Supreme Court in CIT v. Raja Benoy Kumar Sahas Roy (1957) 32 ITR 466 (SC) held that Dairy -farming will not be agricultural operation and income from Dairy farming will not be agricultural income . Accordingly sale of milk cannot be claimed as exempt.
We are gonna start with diary Disturbution.. as of now we are starting small as franchise.. What to know how much tax percentage. And is it exempt etc.. What all steps we need to do..