Incomes which do not form part of Total Income

( i )Neelam, a resident individual, received the following incomes during the financial year 2024- 25 :

You are required to compute incomes exempt under Section 10 or other relevant provisions of the Income Tax Act, 1961. Identify which incomes are not exempt and why ?

PQR Pvt Ltd earned ₹ 15,00,000 for the year ended 31.03.2024 from sale of Coffee from growing and curing in India. How much income will be chargeable to tax as Agricultural Income in this case ?

(A)₹ 6,00,000

(B)₹ 11,25,000

(C)₹ 9,00,000

(D)₹ 3,75,000

Which of the following income is agricultural income ?

(A)Rent received from agricultural land

(B)Income from dairy farm

(C)Income from poultry farm

(D)Dividend from a company engaged in agriculture

For A.Y. 2024-25, Mr. H, a resident Indian, earns income of ₹ 10 lakhs from sale of rubber manufactured from latex obtained from rubber plants grown by him in India and ₹ 15 lakhs from sale of rubber manufactured from latex obtained from rubber plants grown by him in Indonesia. What would be his business income chargeable to tax in India, assuming he has no other business ?

(A)₹ 3,50,000

(B)₹ 4,00,000

(C)₹ 8,75,000

(D)₹ 18,50,000

Ms. S has three farm buildings situated in the immediate vicinity of a rural agricultural land. In the P.Y. 2023-24, she earned ₹ 3 lakh from letting out her farm building 1 for storage of food grains, ₹ 10 lakh from letting out her farm building 2 for storage of dairy products and ₹ 15 lakh from letting out her farm building 3 for residential purposes of Mr. H, whose food grain produce is stored in farm building 1. What is the amount of agricultural income exempt from income tax ?

(A)Nil

(B)₹ 3,00,000

(C)₹ 13,00,000

(D)₹ 18,00,000

Income of an assessee engaged in the business of growing and manufacturing tea in India is taxable to the extent of :

(A)40% of such income

(B)60% of such income

(C)70% of such income

(D)30% of such income

Partial Integration of Agricultural Income with Non-Agricultural Income arises when both Incomes in case of Senior Citizen are as follows :

(A)Agricultural Income Nil, Non- Agricultural Income is above 1,00,000

(B)Agricultural Income is above 5,000, Non-Agricultural Income is above 2,50,000

(C)Agricultural Income is above 5,000, Non-Agricultural Income is above 3,00,000

(D)Agricultural Income is above 1,000, Non-Agricultural Income is above 5,00,000

Menon is engaged in growing and manufacturing rubber in Kerala. His gross income from the activity is ₹ 8, 40,000. How much his income to be considered for the purposes of income tax?

(A)₹ 2, 94,000

(B)₹ 2, 10,000

(C)₹ 3, 36,000

(D)₹ 5, 46,000

Kavi got the following incomes for the Financial Year 2021-22:

(i)Income derived from saplings grown in the nursery amounting to ₹ 5 lakh

(ii)Income derived from removing the hay from the basic grains ₹ 2 lakh

(iii)Received rent for agriculture land of ₹ 3 lakhs which is given of seedlings to Aryan

Compute the total income that is chargeable to tax in the hands of Kavi for the Assessment Year 2022-23 ?

(A)₹ 5,00,000

(B)₹ 2,00,000

(C)₹ 3,00,000

(D)Nil

Srithan grows tomatoes and he uses them for the purpose of manufacturing tomato ketchup in his factory. 60% of tomatoes produced is sold for ₹ 5,00,000 and cost of cultivation is ₹ 3,50,000. 40% of tomatoes produced is procured to manufacturing ketchup the Market Value of the tomatoes is ₹ 3,00,000 and cost of cultivation was ₹ 1,80,000. He incurred ₹ 1,00,000 for processing and ketchup was sold for ₹ 6,00,000 in the Financial Year 2021-22. Compute the Agriculture and Business Income for the Assessment Year 2022-23.

(A)₹ 1,50,000, ₹ 2,00,000

(B)₹ 3,50,000, Nil

(C)Nil, ₹ 3,00,000

(D)₹ 2,70,000, ₹ 2,00,000

Urvish is engaged in the business of growing the coffee in India. He derived an income from sale of coffee grown, cured, roasted and grounded. Determine to what extent his income will be taxable in India. (Assessee has not opted for section 115 BAC).

(A)40% of such income

(B)25% of such income

(C)60% of such income

(D)75% of such income

What is the percentage of Income derived from sale of coffee grown and manufactured in India, as per Rule 7B(1) of the Income Tax rules, is not taxable (exempted) from the Income Tax ?

(A)30%

(B)40%

(C)60%

(D)75%

The total Income earned and derived by an agriculturist Vijay Kumar during the P.Y. 2020-21 comprises of :

(i)from growing flowers and creepers

(ii)from growing of bamboos

(iii)from dairy farming

(iv)from rent received of land used for grazing of cattle required for agricultural activities

Vijay Kumar asks you to state which out of the above shall be treated as agricultural income being exempt from tax as per section 10(2) of the Act.

(A)(i), (ii) and (iv)

(B)(ii) and (iii)

(C)(i) and (ii)

(D)(i), (ii), (iii) and (iv)

As per Rule 7B(1A) the _______ of income derived from the sale of coffee grown, cured, roasted and grounded manufactured in India shall be exempt from tax and remaining ______ will be taxed as business income.

(A)60%; 40%

(B)75%; 25%

(C)35%; 65%

(D)40%; 60%

Taxable income of Mohan Singh from different sources during the previous year was ₹ 10, 41,000. His agriculture income for the period was ₹ 42,000. Find his tax liability for the A.Y. 2021-22. (Assuming assessee has not opted for section 115BAC)

(A)₹ 3,12,300

(B)₹ 1,37,400

(C)₹ 1,42,896

(D)₹ 1,40,710

Barua & Co. is a partnership firm. The firm earned ₹ 8,00,000 for the year ended 31st March, 2021 from sale of coffee grown and manufactured in India. How much of the income of the firm is chargeable to income tax for the assessment year 2021-22 ?

(A)₹ 2,80,000

(B)₹ 3,20,000

(C)₹ 2,00,000

(D)₹ 8,00,000

Income derived from sale of coffee grown, cured, roasted and grounded in India as per Rule 7B (1A) of Income Tax Rules shall be treated both as agricultural income and business income in the ratio of ___________ of such income.

(A)60% & 40%

(B)65% & 35%

(C)75% & 25%

(D)70% & 30%

ABC limited engaged in the business of growing and manufacturing tea in India deposited ₹ 80 lakh in the “Special Account” during the previous year 2018-19 and claimed the same as deduction under section 33AB (40% of business profits of 200 lakh). During the previous year 2019-20, company withdrawn ? 40 lakh from the “Special Account” which was utilized as (i) ₹ 30 lakh on 31st December, 2019 for the scheme framed by the Tea Board (ii) ₹ 4 lakh on 25th January, 2020 for other purposes and ₹ 6 lakh was not utilized till 31st March, 2020. The amount chargeable to tax in assessment year 2020-21 shall be--------

(A)₹ 6 lakh

(B)₹ 16 lakh (40% of ₹ 40 lakh)

(C)₹ 10 lakh

(D)₹ 40 lakh

Grow Green Tea Company having tea gardens in Assam engaged in growing and manufacturing of tea in India. Total profits of the company from the business of growing/ plantation and manufacturing of tea for the year ended 31.03.2020 are of ₹ 2,50,000. Profits subject to tax as business income under Rule - 8 of the Income-tax Rules for A.Y. 2020-21 shall be ----------

(A)₹ 1,00,000

(B)₹ 1,50,000

(C)₹ 2,50,000

(D)₹ 1,25,000

Yadav leased his agricultural land in Meerut to Kailash. There is one dwelling house and storehouse in the immediate vicinity of the land. He received lease rent for land ₹ 50,000. He also received ₹ 12,000 as rent for dwelling house occupied by the tenant/cultivator and ₹ 18,000 as rent for the store house. The amount of income to be treated as agricultural income would be :

(A)₹ 80,000

(B)₹ 68,000

(C)₹ 62,000

(D)₹ 50,000

Which of the following activity is an agricultural activity ?

(A)Supply of water for irrigation purposes

(B)Production of salt from seawater

(C)Spontaneous growth of grass

(D)Cultivation of flowers

Agricultural income of an assessee is aggregated for computing tax liability when it exceeds :

(A)₹ 50,000

(B)₹ 20,000

(C)₹ 5,000

(D)₹ 2,000

Green Wood Plantation Ltd. is engaged in cultivation and processing of Tea. Their net income during A.Y. 2019-20 is to the tune of ₹ 20 Lakhs. What proportion out of the income of ₹ 20 lakh would be treated as agriculture income ?

(A)10%

(B)25%

(C)40%

(D)60%

(e)Amrita, a resident aged 25 years, manufactures tea leaves from the tea plants, grown by her in India. Manufactured tea is sold in India for ₹ 40 Lakh. The cost of growing tea plant was ₹ 15 Lakh and the cost of manufacturing tea leaves was ₹ 10 Lakh.

Compute her tax liability for the assessment year 2019-20.

Crow Ltd is engaged in export of articles and things eligible for deduction under section 10AA of the Income Tax Act, 1961. The previous year 2022- 23 is the 7th year of its operations. It exported for ₹ 20 crore and did domestic turnover of ₹ 5 crore during the year. Its profit of the unit in SEZ is ₹ 4 crore. How much is the amount eligible for exemption under section 10AA on the assumption that it is a unit satisfying all other legal conditions?

(A)₹ 4 crore

(B)₹ 3.20 crore

(C)₹ 1.60 crore

(D)₹ 0.80 crore

If you have established a unit in a Special Economic Zones for manufacture or produce articles or things or provide any service during the previous year 2019- 2020, what is the maximum period for which deduction is available under section 10AA ?

(A)5 Assessment years

(B)10 Assessment years

(C)15 Assessment years

(D)20 Assessment years

Simran Products Ltd having registered Office at Mumbai has setup two manufacturing Units, one unit at Special Economic Zone (SEZ) and other unit at Domestic Tariff Area (DTA). The unit in SEZ was set up and started manufacturing from 02.01.2012 and unit in DTA from 18.08.2015 Simran Products Ltd provide that during the previous year ended on 31.03.2021 the total turnover of Unit in SEZ and in DTA is ₹ 17,00,00,000 and ₹ 6,50,00,000 respectively. Export sales of unit in SEZ and DTA is ₹ 5,00,00,000 and ₹ 2,50,00,000 respectively. Net profit of unit in SEZ and DTA is ₹ 1,60,00,000 and ₹ 90,00,000 respectively. Simran Products Ltd, would be eligible to claim deduction under section 10AA for AY. 2021-22 of an amount of :

(A)₹ 79,19,048

(B)₹ 38,09,524

(C)₹ 47,05,882

(D)₹ 23,52,942

Prabhudayal is engaged in the development and sale of computer software application. It has started a new undertaking in a Special Economic Zone. He furnishes the following information and request you to calculate the amount of deduction available u/s 10AA : (Assuming assessee has not opted U/s 115BAC)

(A)25 Lakh

(B)30 Lakh

(C)50 Lakh

(D)300 Lakh

Kamal has established in the previous year 2018-19 two industrial undertakings, one in a SEZ and one in a normal DTA. The summarized results for both the Units for previous year 2019-20 are :

Amount in Lakh ( ₹ )

Deduction available under section 10AA of the Act to Kamal in Asst. Year 2020- 21 shall be of ₹ __________

(A)45

(B)60

(C)75

(D)70

Ramprasad engaged in turbine manufacturing business has a unit located in SEZ in Jodhpur. The unit in SEZ was in its third year of operation during the financial year 2019-20. Summarized results of SEZ Unit are :

Domestic turnover ₹ 200 lakh

Income exempt under section 10AA for Asst. Year 2020-21 shall be ----

(A)₹ 180 lakh

(B)₹ 90 lakh

(C)₹ 144 lakh

(D)₹ 135 lakh

The quantum of deduction available to offshore Banking Units under section 80LA of Income-Tax Act, 1961 located in Special Economic Zone (SEZ) and satisfying all conditions from the Gross Total Income is :

(A)100% of such income for five consecutive assessment years, relating to the previous year in which the permission was obtained

(B)50% of such income for next five consecutive years

(C)25% of such income for next ten years

(D)both (A) and (B)

(c)XYZ Pvt. Ltd. furnishes the following information relating to its two business units, one located in Special Economic Zone (SEZ) and other located in Domestic Tariff Area (DTA) for the year ended 31-3-2018 :

You are required to compute the deduction available under section 10AA to XYZ Pvt. Ltd. for the Assessment Year 2018-19 by taking that Unit-A in SEZ was set-up in the previous year 2015-16 and separate books of accounts are being maintained for both the units by the company. Give brief reasons for your answer in the context of provisions of the Act.

Share of profit is taxable in the hands of partner under the head :

(A)Business and Profession

(B)Capital Gain

(C)Other Sources

(D)Exempt from Tax

A registered trade union earned income by way of interest on fixed deposit held with State Bank of India of ₹ 6,00,000. The interest income chargeable to tax in the hands of trade union would be :

(A)₹ 6,00,000

(B)₹ 3,00,000

(C)₹ 4,00,000

(D)Nil

Mr. A received an educational scholarship from Government of India of ₹ 25,000. Mr. A spent ₹ 18,000 and saved ₹ 7,000. The amount of exemption under section 10(16) of the Income Tax Act, 1961 will be :

(A)₹ 25,000

(B)₹ 18,000

(C)₹ 7,000

(D)Fully Taxable

Which of the following income of Registered Trade Union is liable to tax under the Income Tax Act, 1961 ?

(A)Income From Capital Gains

(B)Income From House Property

(C)Income from other sources

(D)All of the above

Exemption U/S 10(48C) of the Income Tax Act, 1961 is available to:

(A)Oil and Natural Gas Co. Ltd.

(B)Indian Strategic Petroleum Reserves Limited

(C)Gas Authority of India Ltd.

(D)All the above

Which section of Income Tax Act, 1961 provides exemption from compensation received on account of any disaster from Central Government ?

(A)Section 10(10B)

(B)Section 10(10BB)

(C)Section 10(10BC)

(D)Section 10(10C)

Which of the following income of registered trade union is liable to tax ?

(A)Income from house property

(B)Income from other sources

(C)Capital gains

(D)All of the above