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Clubing of agriculture income

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This query is : Resolved

Vivek (Querist)

30 October 2012 Dear Sir,
There is a individual assessee who runs a business in proprietorship. He also has some ancestral agriculture land.
Suppose his business income is Rs. 5 lacs and and agriculture income is Rs. 2 lacs.

Now please advise me, it is fair to club this agriculture income with his business income for rate purpose ?
or
It is better that he should get a HUF PAN and put the agriculture income in HUF Return.

One more thing to ask, Suppose assessee does not get a HUF PAN, even after that, he can avoid to club agriculture income in his business income.

Please clarify.
Thanks in advance.

Amol S Joglekar

Amol S Joglekar (Expert)

30 October 2012 In order to treat the said land as HUF, it needs to have the title to that effect. (7/12 extract in the name of larger HUF)Else....The individual may treat the ancestral land as his HUF land provided it has come down to him from GRANDFATHER.

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