Mr. X grows sugarcane and manufactures Sugar. The cost of cultivating sugar cane was ₹ 75,00,000 where as the market price of this sugarcane was X 89,00,000. His total profits were ₹ 30,00,000. What will be his agricultural income, as exempt under section 10(1) of the Income-tax Act, 1961 and Rule 7 of the Income-tax Rules, 1962.
A. ₹ 75 lakhs
B. ₹ 16 lakhs
C. ₹ 14 lakhs
D. Cannot be determined
Answer:C
Mr. X grows sugarcane and manufactures Sugar. The cost of cultivating sugar cane was ₹ 75,00,000 where as the market price of this sugarcane was X 89,00,000. His total profits were ₹ 30,00,000. What will be his agricultural income, as exempt under section 10(1) of the Income-tax Act, 1961 and Rule 7 of the Income-tax Rules, 1962.
A. ₹ 75 lakhs B. ₹ 16 lakhs C. ₹ 14 lakhs D. Cannot be determined