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.
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.