ITR of dairy business

I understand that you are looking for information on how to file income tax return (ITR) for dairy business. Dairy business is a type of agricultural and animal husbandry activity that involves raising of animals and production of animal products, such as milk. According to the Income Tax Department, you need to select the appropriate business code that best represents your line of work when filing your ITR forms. The business codes are used to classify the nature of business or profession and ensure proper categorization and compliance.

Based on the web search results, the most suitable business code for dairy business is 01010¹, which is for raising of poultry and production of eggs. This code covers all types of animal husbandry activities, including dairy farming. Alternatively, you can also use 01009², which is for rearing of animals and production of animal products, or 01018³, which is for other agriculture, animal husbandry or forestry activity n.e.c (not elsewhere classified).

However, please note that dairy income (milk from cow) is taxable under income tax⁴, as it is not considered as agricultural income. Therefore, you need to report your dairy income under the head profits and gains from business or profession in your ITR form. You can also claim deductions for expenses incurred in running your dairy business, such as feed, fodder, veterinary charges, depreciation, etc.

I hope this information helps you in filing your ITR for dairy business. If you have any further questions, please feel free to ask me. 😊