A Partnership Firm carrying on agiculture only earned Rs.50 lakhs gross income and after incurring cultivation expenditure Rs.18 lakhs , achieved a net profit of Rs.32 Lakhs during the previous year 2011-12.Is the firm liable to file income tax return for the AY 2012-13? Will my friends kindly clarify?
As per Section 10 Agriculture Income is exempt from Tax.
But ,in case of Individual ,HUF, agriculture income is aggregated with other income to remove slab benefit available to following assessees
-Individual,HUF,AOP/BOI
As per Section 139(1),a firm has to file ROI in every case i.e even when its taxable income is NIL or firm is in loss.
Therefore firm has to file ROI in your case.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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