Agriculture income , when will it be tax free ?

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Querist : Anonymous

Querist : Anonymous (Querist)

17 September 2014 respected experts ,

i am small farmer . i have 1 acre land for cultivation . in a year i produce 2-3 commodities. i never went to market to sell my agriculture product , sometimes a broker or some times a commodity broker or some times a retailer directly comes and make a deal . this way , i earn 250000 to 300000 in a year .

Now my question is ..
1) Can I File income tax ?
2) since i have done deals through brokers and retailers directly therefor i have no written agreement and any slip or any piece of paper of deal . will it be raise any issue while filing an ITR ?
3)A farmer only wants profit and instant money then Is it really necessary for farmer to deal with a such type of person who can deal on paper then will buy a commodity ?

for a farmer , what are the tools or options or methods available to make it simplify so that he can also file an ITR easily .

Nikhil Kaushik

Nikhil Kaushik (Expert)
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17 September 2014 1. yes you can file the return

2. no it wont make any difference how you sold your product

3. not a clear question

4. you just need to compute total amounts received and reduce the cost incurred during agriculture activities. the remaining amount is profit. Please file ITR2.

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Querist : Anonymous

Querist : Anonymous (Querist)

17 September 2014 sir , i mean to say , while filing an ITR will not i have to worry about receipts of sell or any piece of paper ?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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17 September 2014 see if there is no paper you cannot produce one. so atleast ensure that you keep a record of the quantity of produce sold and the price received.

Querist : Anonymous

Querist : Anonymous (Querist)

17 September 2014 sir i maintain a simple register or notebook for all records . will it help me ?

In a notebook i maintain total price of seeds and other expenses and how much have i sold to others , what is my profit etc etc ... in this way i only maintain record .

Nikhil Kaushik

Nikhil Kaushik (Expert)
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17 September 2014 it should be sufficient...but always remember that AO has the right to ask you to substantiate income source..specially in case you are overstating income...

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Querist : Anonymous

Querist : Anonymous (Querist)

17 September 2014 will i have to bring brokers/retailers/commodity exchanger in front of authorities to justify if they will ask to justify .

Sir in a year i earn 2 lacs to 3 lacs sometimes less than 2 lacs.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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17 September 2014 for this level of income dont worry too much. relax and file the return.

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Querist : Anonymous

Querist : Anonymous (Querist)

17 September 2014 sir , i am a teacher also . i also generate some money from there ( so that i can support my agriculture business indirectly ) . i run a coaching . and earn 2.5 to 3 lacs from there . will i have to file 2 different ITR ?
I heard , agriculture income is exempted from income tax . how will i get benefit ?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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17 September 2014 there will be only one return. what benefit are you looking for?

Querist : Anonymous

Querist : Anonymous (Querist)

17 September 2014 if i file ITR for overall total income 4.5 lacs ( 2lacs for agriculture +2.5 lacs for coaching income ) , then will i have to pay tax on total or only for my coaching income ?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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17 September 2014 only coaching income.................

Querist : Anonymous

Querist : Anonymous (Querist)

17 September 2014 ok sir ... thank you very much ... your today's support will help me one day .

Nikhil Kaushik

Nikhil Kaushik (Expert)
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17 September 2014 you are welcome friend...take care

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