Examine with reasons, based on the provisions of the Act, as to chargeability of the following...

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Accounting

Examine with reasons, based on the provisions of the Act, as tochargeability of the following receipts to tax in the assessmentyear 2019-20: (i) Rent of ` 60,000 charged from tenants occupyinghouses constructed on the land situated in India and used foragricultural purposes. (ii) Income of ` 75,000 derived by AnandNursery from the sale of seedlings grown without carrying out allthe basic operations on land. (ii) Mr. Gaitonde, born and broughtup in the State of Sikkim, had a net profit of ` 2,25,000 from thebusiness located in Sikkim and interest of ` 55,000 on thesecurities/ bonds issued by the Government of Rajasthan.

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Answer i As per section 101 agricultural income is exempt from tax The meaning and scope of agricultural income is defined in section 21A According to Explanation 2 to section 21A any income derived from any building from the use of such building for any purpose including letting for residential purposes See Answer

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Examine with reasons, based on the provisions of the Act, as tochargeability of the following receipts to tax in the assessmentyear 2019-20: (i) Rent of ` 60,000 charged from tenants occupyinghouses constructed on the land situated in India and used foragricultural purposes. (ii) Income of ` 75,000 derived by AnandNursery from the sale of seedlings grown without carrying out allthe basic operations on land. (ii) Mr. Gaitonde, born and broughtup in the State of Sikkim, had a net profit of ` 2,25,000 from thebusiness located in Sikkim and interest of ` 55,000 on thesecurities/ bonds issued by the Government of Rajasthan.