I am planning to build a dairy farm with 30 cows want to sell raw milk it will be in a village nearby delhi do i need to pay income tax on selling of raw milk is it taxable pl advise
Dear Sir,
Hope you are doing well !!
Income from a DAIRY FARM i.e. producing milk from cows/buffalo & selling it in any manner-raw milk or value added products is Taxable like any other income. It is not to be treated as Agriculture Income which is income from anything which is grown on land & hence not Taxed.
So, it is taxable.
Hi
Yes, such income shall be liable to income tax. Show such income as business income.
Please note that the maximum amount not chargeable to tax is 2.5 lacs. You don't need to pay any taxes or file return till your income is within limit. Also, as per upcoming changes, if your income is up to 5 lacs, you shall not be liable to pay any income taxes.
Dear Sir,
Yes, it is taxable.
It should be shown under the head income from business.
However, the rebate under section 87A of Income tax Act 1961, which is available since assessment year 2014-15 is raised to Rs 12,500 from existing Rs.2,500.
The amount of rebate is 100% of income tax payable on the total taxable income of up to Rs 5 lakh. A rebate is the amount of tax the tax payer is not liable to pay. Total taxable income or net taxable income is the income after taking into account deductions.
If you are earning taxable annual income up to Rs 5 lakh will get full tax rebate and therefore you will not be required to pay any income tax for FY2019-20.
Definition of agricultural income only includes income in this industry from farming and activities related to land. So if you sell milk you will have to pay taxes on same if your income if above maximum amount chargeable to tax i.e. 250000 for now but if your total income is below 300000 for this year and 500000 for next year then also you won't be required to pay tax however you will have to file return of income if your total income is above 250000.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
Hi,
- Yes you are liable to pay income tax as dairy farming is not an agricultural activity.
Thanks
Hi
Yes, Income tax is payable on such activity.You have to declare it as Business Income.
File return if your Income exceeds the limit of Rs 2.5 lacs in year.
No Tax will be payable till income is 5 lacs .
Further Investment under 80 C can be done to save tax,
Hope it helps.
YEs , the sale of milk is a normal business transaction and hence the net profit will be taxed. You need to pay tax as per your incom slab.
