Mr. Ramesh engaged in the business of growing and manufacturing tea in India received 21 lakhs from Tea Board towards replacement of tea hushes destroyed by forest fire. The amount received from Tea Board by Mr. Ramesh is:
A. Liable to tax
B. Exempt from tax
C. 50%, is exempt from tax
D. 25% is exempt from tax
Answer:B
Mr. Ramesh engaged in the business of growing and manufacturing tea in India received 21 lakhs from Tea Board towards replacement of tea hushes destroyed by forest fire. The amount received from Tea Board by Mr. Ramesh is:
A. Liable to tax B. Exempt from tax C. 50%, is exempt from tax D. 25% is exempt from tax