CMA Intermediate · Direct and Indirect Taxation · Agricultural Income
Which of the following activities does NOT yield agricultural income?
Rearing cattle on a dairy farm with purchased fodder and no land cultivation does not give agricultural income, because the income does not come from basic operations on land. Growing flowers and fruit crops on land does qualify as agricultural income.
- AGrowing flowers on land by performing basic operations
- BRearing cattle on a dairy farm where the cattle are fed purchased fodder, with no land cultivationCorrect
- CIncome from growing mushrooms on land
- DGrowing horticultural fruit crops on land in India
Explanation
Agricultural income requires land-based operations. Purely rearing animals on purchased fodder is not cultivation of land, so it is not agricultural income. Flower growing, fruit crops and standard land-based operations are accepted as agriculture.
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