Agricultural income or not
This query is : Resolved
26 April 2014
Hi All
One of my clients, who is cultivating green grass and supplying to Govt Zoo and Elephant Training Centres the grass on the basis of Tenders. His Expenses are lease rent paid to land owners , labour charges, fertiliser costs and Vehicle hire charges for transporting the green grass from area of cultivation to various destinations. The total turn over is more than Rs 100 Lakhs. In this case whether the entire income can considered as Agricultural Income for Income Tax purpose and whether he is laible for Tax Audit?.If the income is fully not considered as agricultural income whether any ratio is applicable ?
Kindly give a detailed reply
Yhanks in advance
One of my clients, who is cultivating green grass and supplying to Govt Zoo and Elephant Training Centres the grass on the basis of Tenders. His Expenses are lease rent paid to land owners , labour charges, fertiliser costs and Vehicle hire charges for transporting the green grass from area of cultivation to various destinations. The total turn over is more than Rs 100 Lakhs. In this case whether the entire income can considered as Agricultural Income for Income Tax purpose and whether he is laible for Tax Audit?.If the income is fully not considered as agricultural income whether any ratio is applicable ?
Kindly give a detailed reply
Yhanks in advance
26 April 2014
hello jayakumar,
the answer to your question is a big YES ... assuming that he is just cultivating grass and selling that for zoo is agriculture income ... i ll substatntiate my answer by giving you an extract from the act regarding agriculture income definition... " the ambit of agriculture covers all land produce like grains , fruits , tea , coffee , spices , commercial crops ,plantations , groves , and GRASSLANDS ... if you do any of these , it will come under agriculture income .... so its completely exempt...
when the entire income is exempt then there is no point of tax audit... so he would not be liable for tax audit as well...
the answer to your question is a big YES ... assuming that he is just cultivating grass and selling that for zoo is agriculture income ... i ll substatntiate my answer by giving you an extract from the act regarding agriculture income definition... " the ambit of agriculture covers all land produce like grains , fruits , tea , coffee , spices , commercial crops ,plantations , groves , and GRASSLANDS ... if you do any of these , it will come under agriculture income .... so its completely exempt...
when the entire income is exempt then there is no point of tax audit... so he would not be liable for tax audit as well...
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Refund Annexure-B
- House Property Reporting in ITR
- TDS Claim year
- Liable to deduct tds and 44ADA
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- Refund of 20%pre-deposit paid for stay application
- TDS Challan Code
- Rent lease agreement
- Entries in AIS regarding sale of units and shares
- SGST balance is there in credit ledger how to adjust for cgst
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
