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Agricultural income


Lavitha Shetty (CA)     08 November 2019

Lavitha Shetty
CA 
 34 points

| My Other Post

Hello all

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. 

 

avater

shiva sai (student)     08 November 2019

shiva sai
student 
 1 likes  27 points

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Show the same gross receipts u/s 44AD


provide 8% of gross receipts as profit.

1 Like
avater

rama krishnan   08 November 2019

rama krishnan

 943 likes  10229 points

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Even if you furnish all receipts and payment details, 25% or 40%, as the case may be, is chargeable as business income under rule 7B of income tax rules

avater

Kapadia Pravin   08 November 2019

Kapadia Pravin

 915 likes  14283 points

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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.

avater

Lavitha Shetty (CA)     08 November 2019

Lavitha Shetty
CA 
 34 points

View Profile | My Other Post

Not only coffee,  assessee is growing pepper, Arecanut .. Here crops are sold as is condition without processing.. 

 


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