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    Tax Plan

    Uploaded by

    Mrigendra Mishra
    The document discusses tax planning and deductions related to the tea, coffee, and rubber industries in India. Key points include: 1. A portion of income from manufacturing tea, coffee, and rubber is deemed agricultural income and taxed at a lower rate, with the percentages varying based on the level of processing. 2. Subsidies received from boards like the Tea Board or Rubber Board for replanting crops are exempt from taxation. 3. An additional deduction can be claimed if the assessee deposits money in a development account within 6 months of the previous year or tax filing due date.

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    Tax Plan

    Uploaded by

    Mrigendra Mishra
    3K views2 pages
    The document discusses tax planning and deductions related to the tea, coffee, and rubber industries in India. Key points include: 1. A portion of income from manufacturing tea, coffee, and rubber is deemed agricultural income and taxed at a lower rate, with the percentages varying based on the level of processing. 2. Subsidies received from boards like the Tea Board or Rubber Board for replanting crops are exempt from taxation. 3. An additional deduction can be claimed if the assessee deposits money in a development account within 6 months of the previous year or tax filing due date.

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    The document discusses tax planning and deductions related to the tea, coffee, and rubber industries in India. Key points include: 1. A portion of income from manufacturing tea, coffee, and rubber is deemed agricultural income and taxed at a lower rate, with the percentages varying based on the level of processing. 2. Subsidies received from boards like the Tea Board or Rubber Board for replanting crops are exempt from taxation. 3. An additional deduction can be claimed if the assessee deposits money in a development account within 6 months of the previous year or tax filing due date.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    3K views2 pages

    Tax Plan

    Uploaded by

    Mrigendra Mishra
    The document discusses tax planning and deductions related to the tea, coffee, and rubber industries in India. Key points include: 1. A portion of income from manufacturing tea, coffee, and rubber is deemed agricultural income and taxed at a lower rate, with the percentages varying based on the level of processing. 2. Subsidies received from boards like the Tea Board or Rubber Board for replanting crops are exempt from taxation. 3. An additional deduction can be claimed if the assessee deposits money in a development account within 6 months of the previous year or tax filing due date.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 2

    Tax planning for tea, coffee or rubber industry

    Partly agricultural income: [Section 10(1)]


    1. Income from the manufacture of Tea- 60% of the income derived from the sale of
    tea grown and manufactured by the seller in India is deemed to be agricultural income
    and the remaining 40% taken as business income.
    2. Income from the manufacture of Coffee-
    (A) 75% of his income derived from the sale of coffee grown and cured by the seller in
    India is deemed to be agricultural income and 25% is taken as business income.
    (B) 60% of the income derived from the sale of coffee grown, cured, roasted and
    grounded by the seller in India, with or without mixing of chicory or other flavoring
    ingredients is deemed to be agricultural income and the remaining 40% is taken as
    business income.
    3. Income from the manufacture of Centrifuged Latex or Cenex. 65% of the income
    derived from the sale of centrifuged latex or cenex or latex based crepes or brown
    crepes or technically specified block rubbers manufactured or processed by him from
    rubber grown by him in India is deemed to be agriculture income and the remaining
    35% is taken as business income.
    [Rules 7A, 7B and 8]

    Subsidy:

    (a) Subsidy from Tea Board. In the case of an assessee who carries on the business of
    growing and manufacturing tea in India, the amount of any subsidy received from or
    through the Tea Board for replantation or replacement of tea bushes or for
    rejuvenation or consolidation of areas used for cultivation of tea, provided that the
    assessee furnishes to the Assessing Officer, a certificate form the Tea Board as to the
    amount of such subsidy paid to the assessee during the previous year, on demand.
    The amount of subsidy will not be set off against the expenditure on replantation for
    the purpose of the deduction of such expenditure in computing the income.
    (b) Subsidy from certain Boards . The amount of any subsidy received by an assessee
    engaged in the business of growing and manufacturing rubber or coffee in India, from
    or through the Rubber Board or Coffee Board under any scheme for replantation or
    replacement of rubber or coffee plants, or for rejuvenation or consolidation of areas
    used for cultivation of such commodities will be exempt. [Sec. 10(31)]
    Such exemption will be available only if the assessee furnishes to the Assessing
    Officer, a certificate form the concerned Board as to the amount of subsidy received
    by him during the previous year, on demand.

    (C) Deduction in case of amount deposited in development account:


    A deduction in the computation of taxable profits in the case of an assessee, who is carrying
    on business of growing and manufacturing of tea or coffee or Rubber in India, shall be
    allowed where the assessee has, before the expiry of 6 months from the end of the previous
    year or before the due date of furnishing the return of his income,

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