AGRICULTURAL INCOME Objective Answer Type Question

 1. Which of the following is an agricultural income? 

a. Income from interest on a simple mortgage of land used for agricultural purpose 

b. Income from agricultural land situated in Pakistan. 

c. Amount of compensation received from Insurance Company on account of the loss of crop due to flood 

d. Prize from the Government on account of higher yield. 

2. Income from the rent of agricultural land is: 

a. agricultural income 

b. casual income 

c. business income 

d. professional income 

3. Salary received by an Agricultural Farm’s Manager: 

a. Professional income 

b. Salary Income 

c. Agricultural income 

d. Capital Income 

4. Which of the following is an agricultural income? 

a. Rent received from agricultural land 

b. Income from a dairy farm 

c. Income from poultry farming 

d. Dividend from a company engaged in agriculture 

5. In case of a woman assessee her agricultural income of 20,000 shall be included in her total income, when it is more than the following limit: 

a. 1,35,000 

b. 1,10,000 

c. 2,50,000 

d. 2,25,000 

6. Percentage of income from growing and manufacturing tea in India is considered as agricultural income: 

a. 50% 

b. 60% 

c. 65% 

d. 70% 

7. For the computation of tax agricultural income is included in total income if: 

a. Agricultural income exceeds ` 5000 

b. Agricultural income exceeds ` 10000 

c. Agricultural income exceeds ` 50000 

d. Agricultural income exceeds ` 5000 & total income exceeds the exemption limit 

8. For the computation of tax agricultural income is included in the total income of: 

a. Individual 

b. Firm 

c. Company 

d. Local Authority 

9. Percentage of income from the sale of coffee grown and cured in India is considered as business income: 

a. 50% 

b. 60% 

c. 70% 

d. 75% 

10. Percentage of income from the sale of coffee grown, cured, roasted & grounded is considered as business income: 

a. 20% 

b. 30% 

c. 40% 

d. 50% 

11. Income from land but not agricultural income; 

a. Income from self-grown grass 

b. Income from fisheries 

c. Income from mining royalties 

d. All of these 

12. Percentage of income from the sale of rubber is grown and manufactured latex in India is considered as agricultural income: 

a. 45% 

b. 50% 

c. 55% 

d. 65% 

[Ans. 1.(c), 2.(a), 3.(b), 4.(a), 5.(c), 6.(b), 7.(d), 8.(a), 9.(d), 10.(c), 11.(d), 12.(d)] RESIDENCE AND TAX LIABILIT