Go AD-Free with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

Cash from forest tree

364 views

Save Share

Rajat Sharma

Accountant

647 Points Posted on 08 September 2023

Sir with due respect I want to know that I am an wine contractor for the A Y 2023-24 and I am also in possession of forest land and in the forest land having too much verious tree and the said tree has been sold by me for Rs 30.00 Lac in cash to verious forest contractors.Sir the said forest land having 1/2 share of my brother.But all the amount received by me in cash from verious forest contractor and deposit in my current account by me.Sir I want to know that can I deposit the said amount of sale of tree in my current account. all the amount received from the contractor was less than 2.00 Lac.Please guide me Thanks

Replies (2)

Quick Summary

A wine contractor who also owns forest land sold trees for Rs 30 lakh in cash. They deposited the individual payments, all under Rs 2 lakh, into their current account. The advice given is that this cash deposit will be treated as 'Income from other Sources' for tax purposes, unless accounts are audited under Section 44AB. Sales of trees are not considered exempt agricultural income.

Suresh Kumar

Account

408 Points Posted on 08 September 2023

If you will deposit the said Amount in your current account, it will be considered as 'Income from other Sources' until you don't audit ur accounts under section 44 AB.

Sales of trees will not be considered as exempted Income like agriculture income