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S7 Partly agriculture income Partly agricultural income consists of both the element of agriculture and business, so non agricultural part of the income is taxed. Some examples for partly agricultural income are given below: 1. Profit of business other than Tea This rule applicable to agricultural produce like cotton, tobacco, and sugarcane etc, here the market value of the agricultural produce raised by the Assessee for utilizing it as raw material for his business will be deducted out of the total profit of such Assessee while calculating tax on his income. 2. Profit from Tea manufacturing If a person using his own tealeaves grown by him for his tea manufacturing business, then 60% of his income will be treated as agricultural income and the remaining 40 % will be treated as business income. So he has to pay tax on that remaining 40% of income. 3. Income from the manufacturing of centrifuged latex or cenex If a person manufacturing centrifuged latex by using his own made raw then, 65 % of the income derived from the sale of the same is treated as agricultural income so he has to pay tax remaining part of the income. 4. Income from the coffee manufacturing a) 75% of the income derived from the sale of coffee grown and cured by the seller in India is deemed to be agricultural income 25% is taken as business income. b) 5% the income derived from the sale of coffee grown, cured, roasted and grounded by the seller in India is deemed to be agricultural income 40% is taken as business income, Illustration: 1 Mr. Ramsanth had estates in Rubber, tea and coffee. He derives income from them. He furnishes the following particulars of his income for the year ending 31-3-2013. Manufacture of rubber Rs: 5,00,000 Manufacture of coffee grown and cured Rs: 3,50,000 Manufacture of tea Rs: 7,00,000 Compute taxable income of Ramsanth for the A.Y. 2013-14