Leadership theories and models

Leadership theories and models Task 1: Definition of leadership: Leadership can be defined through different ways. But in simple, leadership is the process of motivating or influencing the group of people to do something or doing their work more effectively and efficiently. To be a leader, a person must have the ability to motivate or influence other people. In fact, leaders and followers use the leadership as a process of motivating and influencing others for gaining the objectives of an organization. There exist more similarities between leadership and management in different sector such as: motivating or influencing people and these are done both by manager and also leader. The process of leadership and management are done with the people. The main purpose of leadership and management is to accomplish the goal effectively. There are many activities of management which are similar with the function of leadership. But some dissimilarity is existed between leadership and management. A manager of British Airways should have the ability to lead to other that means he should has the skill of leadership because as a manager he plays the role of managerial and also leader. But the leader doesnt need to play the role of manager. Leadership theories and models: There are lots of theories regarding the leadership. Such as: trait theories, contingency theory, behavioural theory, participative theory, situational theories. These theories are described below: Behavioural approach: In case of behavioural leadership, the Ohio State Studies uses the questionnaire on leadership behaviour and conduct a sample survey through this questionnaire on different school, manufacturing companies or leaders of students. After completing the survey, the studies of Ohio State get the two different views of leadership which identifies the roles and responsibilities of leaders. These two aspects are: the leadership behaviour which is task oriented and another one is consideration. First one that is task oriented behaviour mainly consist the activities of directing, monitoring and designing the employees work and the consideration implies the leaders behaviour or concern towards their welfare, help them and monitoring their task accomplishment. http://www.referenceforbusiness.com/management/Int-Loc/Leadership-Theories-and-Studies.html There is another study which is done on leadership behaviour that is Michigan study. This study mainly focuses on the methods and processes of leadership which is indicated to the subordinates performance and their satisfaction to the job. Simply, it can be said that this study is related to the productivity and the employee. (http://www.referenceforbusiness.com/management/Int-Loc/Leadership-Theories-and-Studies.html) Contingency approach: Contingency approach is also called situational approach. This approach is also concentrated on the team work and indicated to the activities of the leader to motivate his subordinates to work as a group and this group work or the leaders orientation on this is more effective. Contingency theories include Path goal, situational theory etc. and also the contingency theory of Fiedler. According to Fiedler contingency theory, the role of leader should be task- oriented in both the situation of favorable or unfavorable. But this theory was not clearly defined about the style of leadership. Path goal theory indicated to the performance of subordinate that is their experience, performance, their skills and ability etc. and to the working environment which is related to style of group work, authority system, quality of task etc. Impact of leadership styles: Two different styles of leadership: There are various styles of leadership which are used in different situations within the organization and the examples of these styles of leadership are: autocratic leadership, bureaucratic leadership, charismatic, democratic or participative, laissez faire, task oriented and transactional leadership etc. Among these forms of leadership styles, here I make comparison among the autocratic and democratic leadership. 1. Autocratic leadership: Transactional leadership with an extreme form is considered as the autocratic leadership where absolute power has been contained by the leaders to direct their worker or subordinates or team. Little opportunities are getting by the members of staff and team in order to suggestion making which is related with the best interest of the team or organization. It has been intended by many people to treat in this way of liking by them. Hence, the situations of high level absenteeism and the turnover of staff within the organization are leaded by the autocratic leadership. Therefore, effectiveness of this style of leadership is shown on the job of routine and unskilled work, the reason of which is that disadvantages can be outweighing by the control advantages. 2. Democratic leadership: Though, final decisions are made by the democratic leaders where other team members are invited by them to make contribution towards the process of decision making. Job satisfaction is not merely increasing by this through the involvement of the members of team, but it also provides support to skills development of the people. The team members can control their destiny by themselves through which they get motivation for working hard by getting the financial reward. The reason of which is time is needed to make participation of the members of team and may be more time is needed but the better result can be come. The situation on when this approach is used, in the time of working on a team as required and when quality gets more priority rather than the market speed or the productivity of the workers. Leadership Qualities: Leadership skill is considered as the managerial skill which is used for the purpose of motivating the peoples of the group in order to achieve the common goal. In this competitive market, it is very much needed to contain the skill of leadership by the manager through which he or she can lead the organization effectively and efficiently. Leadership is mainly related with the capacity where leader contains the capacity to listen others opinion and observe the activities of employees. Not only is this, in the decision making areas, the skills very much needed for the manager of an organization. One more thing is that if the employees are not motivated to do their works then the business cant be run and the manager with leadership skill can be greatly motivated to the employees of their works and try to give their best. 1. Forecasting and planning: the leader should have clear vision in relation to the forecasting and make planning within the organization from the perspective of SMART objectives of achievable, measurable, specific, realistic, and time boundary. 2. Organizing: leader should make the structure of the plan several parts are made for the specific task so that it can be easily get understand by the employees and as well as can be easily accomplished leader should determine the resources such as: the resources of human, monetary, technology and materials make sure about the work of sensitivity and job security of the employees 3. Command manager should have to distribute the task among the employees manager should maintain the level of hierarchy within the organization and as well as reported this controlling activities are taking by the manager for the purpose of leading the work force 4. Co-ordination manager should unified and harmonised the activities of the organization and as well as organized these activities the manager supervise the activities of the organization as coordinated and the activities and efforts are also harmonised and unified by the manager manager should also provide the support to the organization and as well as the employees of the organization to do their job and motivate them lead the organization and along with motivate the subordinates to give their best efforts on their job Task 2: For the purpose of describing the companies present status on the current condition of economy, after that, the significant changes which have been occurred since from the last five years within these organizations and positive or negative effect of the changes on these organizations, it should be needed to analyse the internal and external factors of the organizational changes where all these subject matter are explained. Internal factors: 1. Technology infrastructure: In order to exchanging the information, facilitating the system of communication and operating the business, internet plays the significant roles which can be included on current infrastructure of technology. British Airways, on this organization, rapid changes are happened on the technological sectors and as well more knowledge is demanded for ensuring effective management system within these organizations for the purpose of resources managing and along with developing these resources where competitive advantage is also maintained by the organization. 2. Change in leadership: Services are restructuring by these organizations such as: British Airways for the purpose of fulfilling the customer demand. It seems to be very difficult to spend money by the organization for solving each and every problem and this matter is well known the top leader of the organizations. In relation to solve the problem, workers of highly committed and flexible are needed within the organization. For make adjustment with the recent changes of the organization, great support can be getting from the leader in order to change the attitude of the employees for the purpose of accepting or welcoming the new changes. 3.Change in Employees Morale and Motivation: Employees morale and motivation are affected by making changes on leadership policies and practices in British Airways. It may also affect the productivity, production and profits of these organizations. External factors: For the purpose becoming successful in the current condition of the world, the organizations also should focus on the external environmental factors, along with the considerations are given toward the internal environment by the organizations. Resources and employees are included on the internal factors where external factors consist of political, economical, social, technological, environmental, and legal factors. Through describing these factors, it can be found out about the current conditions of the organization and the positive and negative effect of changes on the organizations. Political factors: In modern organizations such as: British Airways, there has the significant affects of the global politics. The activities of global politics for example: the incident of 9/11, Soviet Union collapse, Germanys reunification, WTO policies, have significant effect on the British Airwayss business operation and the results of which may impede the development of the organization. Economic factor: British Airways, this organization handle the scarce resource allocation which is related with the economic system. The economic progress of the country is done by leaps and bounds as the phase of progress. In the flourishing stage of economy rising level of peoples standard of living may result to grow the business of British Airways. Social factor: Inspiration, outlook and activity are considered as the foundation of the progress of the society in relation to the human affairs. Therefore, customer actions which are related with the approach and activities of them keep contribution on affecting the business of British Airways. There are some factors for example: level of maturity, vocation type and along with activities of sparing time and these factors are considered as the basis of bringing changes on the attitude and approach of the customer which results the changes of growing the business of British Airways. Technological factors: Tremendous effect is brought by the technological factors in order to the operation of the business development of British Airways and their status and as well as their program of marketing. These incidences are directed towards the rapid movement of the new trends generation and if the organizations dont know about these rapid movements of new trends then the growth and development of the business operation of the organization may impede. In British Airways, world class bid of this organization, management with cutting edge in order to the program of ethical auditing, a deal is signed by this organization with the management system of BSI in relation to the entropy software provision. Environmental factors: Natural gifts are included on the factors of environment which keep contribution on the change management of an organization where lands, water, air all are comprised. In fact, the movement of cost efficiency of British Airways result turned out the production progress of British Airways in order to affiliation alert where it has been showed that for the purpose of ensuring more earning, the organizations should also think about the environmental factors. Legal factor: Legal system is consisting of the rules and regulations which are considered as the framework on the basis of which the business of British Airways operate. The activities of promotion keep contribution towards the development of the nations administration policies for example: natural environment can be polluted through ventures put off by others. Task 3: Change management is considered as the approach of structuring and strategy in order to initiating and managing the process of change at the structure and culture of organization along with the behaviour and attitude of individuals or team to the transition of change at the business process field, implementation of technology, or the organizational policies. There has been shown the dramatically increment of the pace of change. The feature of operating environment is high dynamism and ever more complex as faced by the business and managers. At the todays market place, for the purpose of continuing the success and competent the leadership of change, change is going to make necessary requirement where it is mostly related with the executive leadership skill. The organizational environment within which the operation of the organization is conducted now becoming complex, turbulent and not certain. Therefore, the application of the proper form of changes in the requirement of the environm ental challenges is applied for the long term sustainability of organizations. It also consists of the shifting of the organizations perceptions and beliefs in relation to the employees, customers, competitors and products Managing change is an important requirement for the success of strategy implementation that is also stated by Al-Abri (2007) who says that managing change controls the changes by plan, evaluation and implementation to make the changes worthy and relevant. But Dowson and Andriopoulos (2009) completely disagree with them because they say that managing change is the moving of new technologies and techniques to develop products and services so that organizations can compete in the market. Sengupta et al (2006) covers most of all issues of managing change and they more or less agree with all except Dowson and Andriopoulos because they establish managing change is as a set of factors like psychological, social, personal and demographic that introduces resists, modifies, alters and accepts the changes gradually. Task 4: Change management has consisted a goal which is related with the aspect of human to overcome the change resistance for the member of organization to buy into change and achieve the goal of British Airways of the transformation as orderly and effectiveness. The change management of the British Airways is considered as the both process and tools which are used by the management in order to making changes at the level of organization. It has been expected by most organization to implement the change along with the least resistance and also the most buy- in. For the purpose of occurring this, structured approach is used to implement change so that smooth operation of the transition from the behaviour of one type to other organization widely. Through following ways, the issues of change management can be dealt: At majority of the cases, the first responsibility of the management of British Airways is to processes or behavior identifying which is not proficient and coming up with new behaviors, processes, etc which are considered as more effective inside the organization. there has been occurred the identification of one changes, it is required for the manager to impact estimating which they should determine for the organization and the employee as individual at many levels such as: technology, employee behavior, work processes, etc. The main job of the management of British Airways is to provide supports to the workers of the organization by the changing process which is seemed to be very difficult. In addition, hard work is needed to adopt by the each and every individual and the whole organization in order to making modifications of necessary behavior. Task 5: The imposing or enforcing effective change is seemed to be impossible and very difficult. Unexpected results, inertia or best compliance as reluctant are leaded by the entire approach of top- down. Parish et al (2008) conducted the research which focuses towards the change antecedents for example: matching with vision, relationship quality of employee and manager, motivation to do the job, autonomy role, change commitment is influenced by all. Implementation success and improved performance have the great impact on the significant affective commitment in British Airways. At functional change in British Airways, training and development is considered as the significant part of it. The significance of it may identified in terms of new skills, attitudes and behaviors as required but it has also the aim of giving staff understanding and empowering them to increase confidence of them by pursuing continuous improvement (Burnes, 2004, and Kotter, 1996). There is needed to establish the comprehensive program of training along with the placing of the system for evaluation and feedback. Therefore, training resistance and common problems for example: inability of transferring new skills of the workplace; is discussed by Rusaw (2000), which stemmed from the struggle among the domination and efforts of the organization to employee emancipation.

The Transition To The Role of Professional Nurse

My most recent employment included working as a Rehabilitation vocational nurse in an in-patient Rehabilitation hospital. Typically I cared for 6-8 patients at a time, providing total care for each. I am IV certified with much experience in the field, particularly within pediatrics. I have worked with professional nurses, physical and occupational therapists, social workers, dietitians, physicians and more as part of a collaborative and comprehensive health care team. Issues and Concerns Surrounding Transition For Practical/Vocational Nurse A licensed practical or vocational nurse (LPN or LVN) is often the first step in one's career toward becoming a certified professional nurse. The role of a vocational nurse differs significantly from the role of a professional nurse. Most nurses trained at this level have one year of study experience at a vocational or community college. A vocational nurse is used to working under the supervision of a licensed RN or professional nurse or physician (Quan, 2004). There are multiple issues and concerns surrounding the transition to the role of professional nurse, none the least of which is the shortage of qualified nurse educators to provide guidance to LPN's desiring a career as an RN (Quan, 2004). There are also multiple levels of education one may pursue as a professional nurse that must be considered (Quan, 2004). For example, while many hospitals in the past have offered three year courses allowing students to live in the hospitals, few of these programs still remain (Quan, 2004). Most vocational nurses now desiring a professional career must pursue their Bachelor of Science in Nursing or an associate's degree in nursing. This requires much time, effort and of course, acceptance into a qualified nursing programs. A vocational nurse must also have the ability to effectively transition to the role of a supervisor or leader, capable of making complex decisions and delegating tasks to others as part of their job responsibilities as a professional nurse. Clinical Judgment in Autonomy and Accountability of Professional Nursing Practice Professional nursing practice affords RN's a relatively large amount of autonomy and accountability on the job. Professional nurses are often called on to use their own technical expertise and judgment to help manage and oversee patient care as part of members of a collaborative health care team (Shanbhag, 2002). They are accountable for the results of any decisions they make regarding patient care, even when those decisions involve delegating tasks to others. In cases where professional nurses supervise the work functions of others, professional nurses must also be held accountable for patient outcomes and the outcomes of their underlings. Professional nurses are often afforded the ability to delegate tasks as they see appropriate to underlings including vocational nurses (Shanbhag, 2002). This requires not only a great deal of decision making ability but also the ability to differentiate among underling's skills, qualifications and abilities. This will help them remain accountable for the actions of each member of their health care team. A professional nurse is also more likely to be held accountable for patient's outcomes as they often supervise the care of other nurses or health care assistants involved in patient care (Shanbhag, 2002). Most are expected to exercise â€Å"independent judgment† reserving the right to direct care in certain circumstance (Shanbhag, 2002). Professional nurses are also more likely to be held accountable for patient outcomes as well as the performance of those working under their direct supervision. How Professional Nurse Collaborates with Others To Achieve Effective Patient Care The best possible outcome for patients is only realized when professional nurses work as members of a multidisciplinary team, collaborating to ensure the best patient outcome. A professional nurse does not work alone but rather as a member of a comprehensive patient care team whose goals include optimizing patient outcomes. Members of this comprehensive health care team may include nursing assistants, professional nurses, primary care physicians, social workers, patients and family members (Coombs, 2004). For collaboration to work in the health care team it must often be defined in a non-hierarchical or cooperative manner based â€Å"on shared power and authority† assuming that each member of the team holds a certain level of knowledge, responsibility and influence that directly influences patient outcomes (Coombs, 2004). Professional nursing requires many of the same leadership skills required of doctors or other management professionals. The primary leadership skills beneficial to the field include (1) the ability to establish, maintain and promote communication and interpersonal relationships, (2) the ability to delegate work tasks and oversee the work of others (3) the ability to make decisions based on one's knowledge, skills and expertise (4) the ability to work as members of a collaborative team and (5) the ability to help create interdependency and promote knowledge sharing among all team members (Coombs, 2004). The ability to work collaboratively is a fundamental skill required of effective leaders (Miccolo & Spanier, 1993). A professional nurse must first be able to provide coworkers, supervisors and underlings with clear communication and insight regarding his or her goals, methods, policies and programs. A professional nurse like any other member of a health care team is responsible for knowledge sharing. Anyone responsible for knowledge sharing within an organization must have the ability to develop communication skills among team members. Further, a leader knows how to delegate work tasks to ensure they aren't overburdened by administrative or nursing tasks at any one point in time. This helps reduce burn out and promotes a more efficient and product team environment. A nurse must also rely on their own education, experience and knowledge to help make directed and responsible decisions within the health care environment. This will help the nurse work as an effective leader within the health care team, and promote cooperation among all team members. Management of Nursing Care and Delegation Professional nurses must act as managers, working to help build, create, maintain and manage effective partnerships or teams of workers within the health care environment. The management of nursing care involves identifying what members of the health care team are capable of carrying out certain roles, and assigning them those roles accordingly to ensure the patients basic needs are met, and to ensure a positive health outcome for patients treated under a professional nurses care. Delegation of tasks is an autonomous task requiring independent decision-making capability. Since professional nurses tend to work in a role that requires leadership, independent thinking, decision making and accountability for patient outcomes, it naturally follows that professional nurses must learn how to delegate tasks appropriately. Proper use of delegation within the health care environment will also free up time for professional nurses to work with multiple patients and to address the many administrative functions and tasks that come along with the role of a professional nurse in today's health care environment (Coombs, 2004).

Effect of Colors on the Brain and on Emotions Essay

Colors are an intimate facet of our everyday lives and exist in everything that we see. Colors and emotions have a strong relationship between them. It is widely recognized that colors have also a strong impact on our emotions and feelings (Hemphill, 1996; Lang, 1993; Mahnke, 1996). The color red has been associated with excitement, strength, sex, passion, speed, and danger. White has been associated with pure, virginal, clean, youthful, and mild. Blue that is most popular color has been associated with trust, reliability, belonging, and coolness. Black is allied with sophistication, elegant, seductive, mystery, and sexual. And Pink is allied with soft, sweet, nurture, and security. Colors are linked with many different emotions. All colors have positive and negative impression connected with it. It has been tested and proven that colors have different alpha rate associated with it. The purpose of the study was to see if the brain responses differently while looking at different colors and to see if there were any connections between color and emotions. Methods Participants The data for this study was gathered by a total of 11 participants from Cognitive Neuroscience Lab class (4 male and 7 female) at the University Center, Lake County Campus. Among those participants included one professor and the other ten consisted of undergraduate students from psychology department at Northeastern Illinois University. All the participants tested had no sort of color deficiency. Stimuli Series of six questions were prepared for the experiment consisting of two parts: the first part included power-point with the five different colors playing each for 20 seconds followed by the questionnaire. The series of questions asked the participants about their emotional stage while looking at the colors. Five random colors were chosen based on cultural reference for America. The colors consisted of red, white, blue, black and pink. The color samples were prepared using Microsoft PowerPoint 2010 software. Procedure For this study, participants were tested individually in a classroom designed as a computer lab. Each participant was seated front of a desktop computer. The monitor displayed each color illustration full screened one at a time which lasted 20 seconds each. Participants were told to look for a smiley face while looking at colors to keep them focused on the screen. Each participant was observed under the NeuroSky Mindset EEG while viewing the colors to record their brain activity. The order of color illustration was same for all the participants. After each participant was done looking at the colors; they were asked a series of questions related to emotions. Participants were asked, â€Å"What emotional response do you associate with (name of color)? and What color attracted you more? These questions were modified from Boyatizis and Varghese (1994) and Hemphill (1996). Only one response was permitted for each question. The answers were recorded on an observation sheet. Each observation lasted about 5 minutes each. Results Data for this study was analyzed using Microsoft Excel. The median and mean was conducted to get the different alpha amplitude. There were a total of seven different responses for answers to choose from for the emotion section of the questionnaire and five different colors to choose from for the response to what color attracted the participant more. Some of the questions had the same meaning (e. g. , calm, angry) and some had different meaning such as (honest, stable). Based on the results; red had the highest amplitude which means that participants were calm while watching the color red. Pink had the lowest amplitude which means that participants were excited or stressed while watching the color pink. The average mean ranged from 29. 3 – 11. 6. Even though red is considered an excited color; the EEG showed that participants were more calm or relaxed while observing red. Pink is considered a soft and sweet color but the EEG showed that participants were stressed and excited while observing pink. One-tailed t-test was used to analyze the data for significance. There was significance between all colors except when we compared red vs. white and white vs. black. The p-value for red and white was 0. 1, for white and blue p-value was 0. 02, between blue and black p-value was . 14, and p-value between black and pink was 0. 03. These results show that there was significance difference in alpha. The different amplitude showed the different alpha rate. Nine out of eleven participants chose pink as most excited color and six out of eleven chose pink as their favorite color. This shows a correlation between brain activity and emotions. The EEG showed pink as the most stressed or excited color and the participants chose pink as more excited as the answer to one of the question for experiment. Discussion The main aim for this study was to examine color-brain activity allied with emotions among random sample from undergraduate students and professor. The present study consisted of five different colors including red, white, blue, black and pink. A headset from NeuroSky Mindset, desktop computer and a questionnaire. Overall, 54. 4% participants said that pink was their favorite color and 81. 8% of participants said that they felt excited when they say the color pink. 18% of participants said they were attracted to the color red and the rest of 27% was distributed equally among the color white, blue and black. The results concluded that there was a significant different among all the colors except for red vs. white and black vs. hite. A total of six participants said that they felt danger when they saw red but the EEG results showed the opposite concluding that they were more relaxed. A total of six participants said they felt calm while looking at white and seven said they were calm while looking at blue color. Almost all for except one said they felt serious while seeing the color black. For future studies, I would have the participants write their emotional response right after they see the color and have them decide what response they feel instead of having them to choose one of the answers given.

The Meaning And Concept Of Agricultural Income Finance Essay - Free Essay Example

Sample details Pages: 7 Words: 2242 Downloads: 2 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? Agricultural income is exempt under the Income Tax Act, which means that income earned from agricultural operations is not taxed. Agricultural income has been defined under section 2 clause 1A of the Income Tax Act. As per Section 2 (1A), Agricultural Income means  [1]  : Any rent or revenue derived from land which is situated in India and is used for agricultural purposes. Any income derived from such land by agricultural or the performance by a cultivator or receiver of rent-in-kind of any process ordinarily employed by a cultivator or receiver of rent-in-kind to render the produce raised or received by him fit to be taken to market or the sale by a cultivator or receiver of rent-in-kind of the produce raised or received by him, in respect of which no process has been performed other than a process of the nature described in paragraph (ii) of this sub-clause ; any income derived from any building owned and occupied by the receiver of the rent or revenue of any such land, or occupied by the cultivator or the receiver of rent-in-kind, of any land with respect to which, or the produce of which, any process mentioned in paragraphs (ii) and (iii) of sub-clause (b) is carried on : Provided that the building is on or in the immediate vicinity of the land, and is a building which the receiver of the rent or revenue or the cultivator, or the receiver of rent-in-kind, by reason of his connection with the land, requires as a dwelling house, or as a store-house, or other out-building, and the land is either assessed to land revenue in India or is subject to a local rate assessed and collected by officers of the Government as such or where the land is not so assessed to land revenue or subject to a local rate, it is not situated in any area which is comprised within the jurisdiction of a municipality (whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee or by any other name) or a cantonment board and which has a population of not less than ten thousand according to the last preceding census of which the relevant figures have been published before the first day of the previous year ; or in any area within such distance, not being more than eight kilometres, from the local limits of any municipality or cantonment board referred to in item (A), as the Central Government may, having regard to the extent of, and scope for, urbanisation of that area and other relevant considerations, specify in this behalf by notification in the Official Gazette This paper will be structured so as to understand the meaning behind the above mentioned provisions. It shall broadly be divided into rent on revenue derived from land income derived from agricultural land for agricultural operations income from farm building once this understanding is gained, the researcher would dwell upon what would amount to agricultural income and what wou ld not amount to agricultural income as well as income that would amount to part agricultural and part business and would end by discussing the understanding that the researcher has gained with regard to the meaning and concept of agricultural income through the course of this assignment. Agricultural Income Rent on Revenue Derived from Land: As per Section 2 (1A)(a) there seem to be three criteria laid down (i) rent or revenue should be derived from land (ii) land situated in India (iii) the land should be used for agricultural purposes. Revenue is said to be derived from the land if it is effective and immediate source of income and not if it is indirect or secondary. Rent received in cash or kind amounts to agricultural income as long as the remaining criteria are satisfied. Rent from sub-lease would also be considered as agricultural income. In Durga Narain Singh v. CIT  [2]   revenue the term is used in a broader sense of return, yield or income, and not in the sen se of land revenue  [3]  indirect revenue such as income derived from dividend paid by a company from agricultural income would not be agricultural income as the direct source of income would be through the shareholding.  [4]  But the surplus income received from the sale of agricultural land would not amount to agricultural income; this is so because it does not meet the criteria as laid down in Section 2(1A) of the Act. The second criteria situated in India. From the simple reading of the section it can be understood that this criteria not only applies in sub-clause (a) but also in (b) and (c). this would mean that any income earned from agricultural land outside of India would be taxed and not exempt under Section 10(1) it would be taxable depending upon the residential status of the recipient. The primary condition for exemption remains that the land in question is to be used for agricultural purposes keeping this in mind it is essential to understand what would co me under agriculture or rather the meaning of agriculture. The terms agriculture and agricultural purposes have not been defined under the Act. Under the circumstances it is necessary to understand their meaning in common parlance. It is to be noted that the term agricultural has varied definitions and it has a narrow sense as well as a broad meaning. Wider sense comprising of all activities related to land such as horticulture, livestock, husbandry, etc. Bhagawati, J had put an end to the above disparity in definition by laying down the following principles in CIT v. Raja Benoy Kumar Sahas Roy  [5]  he stated that there would be basic operations (expenditure of human skills, labour upon land itself, tilling of land, sowing of seeds, etc.) and subsidiary operations (weeding, removal of undesired undergrowth, pruning, etc.) which would form one integrated activity. Basic operations or subsidiary operations alone cannot constitute a land being used for agricultural purposes and hence income from it would not be agricultural income. He also went on to say that agriculture does not merely include food and grain. It is to be construed as all products of land that could be used for consumption, trade and commercial assets. He also stated that breeding, dairy farming, etc might have an association with land but by themselves keeping in mind the above mention basic and subsidiary operations they would not constitute as agriculture. Income derived from agricultural land for Agricultural Purposes: under Section 2(1A)(b) there are three instances of agricultural income: income derived by agriculture: income derived from agriculture (to determine if income derived is agricultural income one has to apply the principles as seen in the case CIT v. Raja Benoy Kumar Sahas Roy  [6]  ) from land which is situated in India and is used for agricultural purposes. income derived from market process: sometimes a produce needs to be altered to make it a marketable commodity. The income received from this would also be agricultural income subject to the following conditions the process must be one which is ordinarily employed the process must be applied to make the product fit to be taken to market E.g.: tobacco leaves need to be dried before they are fit for market consumption. Other instances of ordinary process would be cleaning, drying, boiling, etc. if process is performed on a product that can be sold in market in its raw from then it would be part agricultural and part non-agricultural income.  [7] income from sale of agricultural produce: income from sale of agricultural produce would be agricultural income and if any process is employed which would not be necessary for the produce to be made saleable (the produce has market value in its original form) then it would be part agricultural and part non agricultural income.  [8] Income From Farm Building: annual value of house property would be taxable under Section 22. The exception is when house property satisfies conditions as given under Section 2(1A)(c), it would be treated as agricultural income and would be exempt from tax virtue of Section 10(1). The building is occupied by the cultivator or receiver of rent-in-kind. It is on or in the vicinity of land situated in India and used for agricultural purposes. Cultivator or receiver of rent-in-kind, due to his connection with the agricultural land requires the building as a dwelling house, store house or other out-building. Land needs to be asses to local revenue or rate. If this is not done, then it is alternatively to be situated outside of an urban area It is to be noted that the building is to be used only for agricultural purposes and if used for any other purpose such as renting it out as a residence, etc. then it would become taxable. Income Agricultural or Non-Agricultural The terms agriculture and agricultural income have not been defined within the Income Tax Act, 1961. But these terms find their definition within the judicial decision given by Bhagawati, J. in CIT v. Raja Benoy Kumar Sahas Roy  [9]  where in four principles (Basic operations, Subsequent operations, agriculture not merely includes food and grains and mere connection with land not sufficient) were laid down to better understand the terms. In this case, denuded parts of the forest were replanted and subsequent operations in forestry were carried out. The income which was received from the replanted trees was determined to be agricultural income. There are various other examples through judicial decisions with regard to what would amount to agricultural income. Some instances would be as follows. In CIT v. Rai Shamsherjang Bahadur  [10]  the matter before the court was if the fees collected from the owners of cattle normally used for agricultural purposes was permitted to graze upon forest land grass that grows spontaneously would amount to agricultural income. The c ourt had decided that the same would amount to agricultural income. Share of Profits from a firm, the interest on capital from a firm are also considered to be agricultural income. The share of profit of a partner from a firm engaged in agricultural operations similar to salary received by him for rendering services is agricultural income.  [11]  This is so because payment of salary to a partner represents the special share of profits a firm has. The salary which is paid retains the same character as the income of the firm and hence remains agricultural income. The same would be the case with regard to interest on capital received by a partner from the firm engaged in agricultural operations.  [12] There has been judicial controversy as to if income from nurserys would amount to agricultural income within the definition given under Section 2 (1A). this was settled with the amendment brought about to Section 2 (1A) with effect from assessment year 2009-10 which provided t hat any income derived from sapling or seedlings grown in a nursery shall be deemed to be agricultural income.  [13]  As per the amendment whether basic operations are carried out or not, the income received would be treated as agricultural income and would qualify for the exemption under Section 10(1). On the other hand dividends paid by a company are considered to be non-agricultural income as they do not meet the criteria and have no direct relation with the agricultural land.  [14]  There are various other instances of non-agricultural income such as interest arrears  [15]  (interest on arrears is neither rent nor revenue derived from land), Purchase of standing crop  [16]  (purchase of standing crop and its sale later show no interest in land except a mere license to enter upon it and gather the produce), fisheries  [17]  , poultry farming, toddy tapping  [18]  , etc. Income which is partially agricultural and partially from business: if the income receipts comprise of both agricultural and non agricultural elements, then it has to be looked at separately and the agricultural income part of it must not be taxed.  [19]  Similarly when a man subjects agricultural produce to a manufacturing process before selling it, then the profits on sale would have to be disintegrated and the portion attributing manufacturing process would have to be taxed and the remainder would have to be exempt as it would pertain to agricultural income. In the instances where a company produces tea leaves and manufactures tea, the income received would have to be divided and 40% of it would be considered to be income from the manufacturing process and the remainder would be looked upon as income from agriculture.  [20]  Growing and manufacturing tea is covered under Rule 8 of the Income Tax Rules, 1962. Rule 7A provides for the manufacture of rubber. Of the income computed, 35% would be taken as taxable income and the remainder would be par t of agricultural income. Rule 7B deals with growing coffee in India. The income derived from growing and curing coffee of which 25% of the total income derived would be deemed to be income liable to tax and the remainder is deemed to be agricultural income. Income from coffee grown, cured, roasted and ground in India whether it is mixed with chicory or other flavoring or not would be treated as business and 40% of the income would be taxable and the remainder would be agricultural income. Rule 7 provides for any other cases. For disintegrating a composite business income which is partially agricultural and partially non-agricultural, the market value of any agricultural produce, raised by the assesses or received by him as rent-in-kind and utilized as raw material in his business, is deducted. No further deductions is permissible with regard to any other expenditure incurred by the assesses as cultivator or receiver of rent-in-kind. Conclusion Don’t waste time! Our writers will create an original "The Meaning And Concept Of Agricultural Income Finance Essay" essay for you Create order