Ms. S has three farm buildings situated in the immediate vicinity of a rural agricultural land. In the P.Y. 2023-24, she earned ₹ 3 lakh from letting out her farm building 1 for storage of food grains, ₹ 10 lakh from let

Official answer key: (B), (D). Official source note: Farm Building 1 ₹ 3 Lakh exempt as considered as agriculture income being used for storage of food grains. Farm Building 2 ₹ 10 Lakh taxable as not considered as agriculture income being used for storage of dairy product. Farm Building 3 ₹ 15 Lakh taxable as not considered as agriculture income being used for residential purpose whose food grain store in farm 1 and not in farm 3 considering all farm building are independent and not on the same land. Therefore, the amount of agriculture income exempt is ₹ 3 Lakh. Correct option is B. Further Farm Building 3 ₹ 15 Lakh can ben considered as exempt considering agriculture income being used for residential purpose whose food grain store in farm 1 assuming all farm building are on the same land. Therefore, the amount of agriculture income exempt is ₹ 18 Lakh. Correct option is D.