Agricultural income or not
This query is : Resolved
JAYAKUMAR.M.G
(Querist)
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
V Uday Kiran
(Expert)
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...
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