Rule 7A of Income Tax Rules 1962: Income from the Manufacture of Rubber

Rule 7A - Income from the manufacture of rubber

(1) Income derived from the sale of centrifuged latex or cenex or latex based crepes (such as pale latex crepe) or brown crepes (such as estate brown crepe, remilled crepe, smoked blanket crepe or flat bark crepe) or technically specified block rubbers manufactured or processed from field latex or coagulum obtained from rubber plants grown by the seller in India shall be computed as if it were income derived from business, and thirty-five per cent of such income shall be deemed to be income liable to tax.
(2) In computing such income, an allowance shall be made in respect of the cost of planting rubber plants in replacement of plants that have died or become permanently useless in an area already planted, if such area has not previously been abandoned, and for the purpose of determining such cost, no deduction shall be made in respect of the amount of any subsidy which, under the provisions of clause (31) of section 10, is not includible in the total income.

Extra Notes for Readers:

- Rule 7A was introduced by the Income Tax (Second Amendment) Rules, 2001, w.e.f. 1-4-2002 (Assessment Year 2002-03 onwards)

Check at Income Tax Dept. official site for latest version of the Rule.

This page was last updated on 17th October 2016.