Rule 271 of Income Tax Rules - Income from manufacture of rubber, coffee and tea

Last Updated: 01-04-2026

271. Income from manufacture of rubber, coffee and tea.^{^[i]}

(1) In terms of section 533(2)(b)(i), incomes specified in column B of the following Table, shall be computed as if it were incomes derived from business and the percentage of such incomes specified in column C thereof shall be deemed to be the income liable to tax.

Table

Sl. No.	Nature of income	Percentage
A	B	C
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	35%
2.	Income derived from the sale of coffee grown and cured by the seller in India	25%
3.	Income derived from the sale of coffee grown, cured, roasted, and grounded by the seller in India with or without mixing chicory or other flavoring ingredients,	40%
4.	Income derived from the sale of tea grown and manufactured by the seller in India	40%

(2) In computing the income specified in sub-rule (1), an allowance shall be made in respect of the cost of planting rubber plants, coffee plants and tea bushes, as the case may be, in replacement of plants or bushes that have died or become permanently useless in an area already planted, if such area has not previously been abandoned.

(3) For the purposes of determining such cost referred to in sub-rule (2), no deduction shall be made in respect of the amount of any subsidy, which, under the provisions mentioned in Schedule III [Table: Sl. No. 21] to the Act is not includible in the total income.

(4) For the purposes this rule, the expression curing shall have the same meaning as assigned to it in section 3(d) of the Coffee Act, 1942 (7 of 1942).

[i] This Rule was inserted by N No. 22/2026 dt. 20-03-2026 wef 01-04-2026.

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Rule 271 of Income Tax Rules - Income from manufacture of rubber, coffee and tea