This discussion clarifies the treatment of agricultural income and expenses within accounting books. It addresses whether there are limits on claiming agricultural expenses under the IT Act and confirms that expenses debited to the agriculture income account are treated correctly. The net agricultural income, after deducting expenses, is the figure relevant for tax purposes. The query also seeks guidance on whether agricultural income should be credited to the capital account or the profit and loss (P&L) account, with the recommended approach being through an Income & Expenditure Account.
04 December 2021
SIR, one of the it assessee agrilculture income rs:2,80,115/- and agrilculture expenses rs :110000/- showing in books. Question: 1.Agrilculture expenses claimed allowed any limit applicable in it act and expenses debited to agrilculture income account correct procedure. 2.above transactions agrilculture income rs:2,80,115/- or rs: 170115/- showing in it act.
05 December 2021
sir, agriculture income rs:2,80,115/- amount through on bank account .my doubt agriculture income credited by capital account or p&l account correct procedure.