Yes, friends, how are you all?
How are you?
Everything is going well.
Today is our last lecture of Business and Profession.
It will last for 5-10 minutes.
It will end.
Business and Profession is my promise.
Sir, you always say it's the last.
Today is really the last.
I am not lying. I am wearing a tie.
I am not lying. I swear.
I am wearing a tie.
I am not lying.
Come on, hurry up.
Come on.
What? It's the last.
It's the last.
Come on, hurry up.
Come on.
The topic is, friends,
Look what's behind me.
Can you see what's behind me?
Computation of business income.
In case where income is partly agricultural and partly
business in nature.
For example, you have some income which is half business
income and some agricultural income.
Sir, what are you talking about?
Have you lost your mental balance by recording this lecture
and teaching us?
There is no such thing.
For example,
you have some tea farm in Darjeeling.
You have some tea farm in Darjeeling where you do tea
farming.
Tea is grown from it.
You do tea processing from it and sell it.
For example, tea.
Baag Bakri tea.
You make your day.
You have a cup of hot tea and
you have someone to serve it.
This is how people advertise.
Basically, you have a tea farm.
You make tea from it and sell it.
Now, tea farming.
What is farming?
In a way, it is agricultural income.
Agricultural income is exempt.
And what is the tea you are selling?
In a way, it is business income.
Activity.
Two things are coming out of the same activity.
If you are farming tea, it is agriculture.
When you are selling tea, it is business income.
Now, how is its taxability?
What is it?
We have to study that.
There is nothing in it.
You take the figure of your total sales.
Multiply it by a percentage.
Then you will get the business income and agricultural
income.
Sir, why are we studying this section?
We are studying this section because let's say you want to
work in a tea making company.
Then you won't need these provisions.
You won't need those expenses, sales minus expenses,
expense disallow, allow.
In that case, you will have a percentage system.
Then you will say, where did this come from?
Master didn't tell me.
What should we do in that case?
Sir, Master is telling you to go to a company where tea and
coffee are being made.
There, you are getting both agricultural income and
business income.
So, agriculture will be exempt.
Business will be taxed.
Now, how much percentage of that income should be taken in
business and how much percentage should be taken in
agriculture?
We have to see this.
Come here.
Come straight to the table.
Come straight to the table, friend.
What does the table say?
That income from the sale of rubber, if it is the work of a
rubber product, derived from a rubber plant, then what is
the business income? 35% which will be taxable
and 65% will be your agricultural income.
Director sir, can you zoom in?
35% will be taxable.
Business income will be considered here.
And 65% will be exempt.
Okay? Come here.
Tea.
If it is the work of tea, then whatever receipts you have
in the work of tea, 40% will be considered as business
receipts and 60% will be considered as agricultural
receipts.
The 40% which are your business receipts, you give your
income tax on that.
You don't give anything on the 60%.
You show in your return that yes, I have agricultural
income.
Income from sale of coffee, grown and cured by the seller
in India, if you are just growing and curing, then whatever
receipts you have, 25% of that will be considered as your
business income.
75% shall be the agricultural income which shall be exempt
in the hands of the businessman.
And then what is it?
Grown, cured, roast, grounded, you are doing everything
grounded.
You have taken the life of a poor coffee.
In that case, 40%, whatever receipts you have, 40% taxable,
rest 60% exempt.
This is the point, friends.
Is it clear?
I think your points will be clear.
40%, 60%.