Hi I am a Independent Business Analyst,
Few of my clients who are farmers owning 5 to 25 acres of land want to file income tax return. They had been doing a lot of cultivation. They had not filled any tax returns till date, but each have income (profit) around 2 lakhs to 40 lakhs per annum after offsetting all the expenses. Usually in these villages these farmers sell the products in local market and after putting some money for their savings, they buy gold ornaments for their kith and kin and as saving. (Common in India)
I know that all the Agriculture income is free from Income tax. But I like to know whether they can file the income tax for the previous years also for the agriculture income and to which previous assessment years they could file.
They have bought gold ornaments in the excess money they are having. What will be the wealth tax to be paid if they had bought gold ornaments and holding the same with the agriculture income.
Because when going for loan they need to tell about their assets, and gold ornaments like 10 soverign, 50 soverign, 100 soverign, 200 soverign, even 800 soverign etc., are owned by them. If declared the purchase of ornaments in previous years, will they need to pay the wealth tax and penality for the same. What will be the wealth tax and penality for declaring late, when asset value exceeding 30 lakhs including agriculture land and other non-performing assets like gold. Kindly clarify.
This will enable me to advice them to file the income tax returns and declare the ornaments in their hand, and declare the same and even avail insurance with net worth for them including all non-performing assets (like gold) and it will ease them to get loan...
regards,
Yatkar
CAclubindia
