CAF-2 · Chapter 11 · Question 10 of 15
Which of the following is NOT treated as agricultural income and is therefore fully taxable under the Income Tax Ordinance, 2001?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) C) Dividend received by a shareholder from a corporate farming company.
Explanation
Agricultural income includes rent from land, income from cultivation, and income from connected buildings. However, dividends paid by a corporate entity (even if derived from farming) are classified as dividend income, not agricultural income.
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