Lavitha Shetty (CA) 08 November 2019
One of my clients accountant filed ITR of my client showing 84lac as receipts from agriculture and 40 lacs as agricultural expenditure. And no other income was shown. My client is a coffee planter having plantation around 22 acres..
His bank accounts do not have major transactions.. It is below 15 lac
And his actual agricultural income do not 10 Lac
Now AO asking for proof for receipts and payments mentioned in itr
Or else same treated as business income and tax shall be paid.
Now how to deal with this.. Kindlys suggest.
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Kapadia Pravin 08 November 2019
Income from Growing and Manufacturing of Coffee [Rule 7B]
Income derived from the sale of coffee grown and cured by the seller in India, shall be computed as if it were income derived from business, and 25% of such income shall be deemed to be income liable to tax.
Income derived from the sale of coffee grown, cured, roasted and grounded by the seller in India, with or without mixing chicory or other flavouring ingredients shall be computed as if it were income derived from business, and 40% of such income shall be deemed to be income liable to tax.
emojikeybd (sfgvdf) 08 November 2019
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