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Query on agriculture income

Yatrik Jobanputra (CA Final Student) (170 Points)

21 June 2012

hello every one,

I had a query with the agriculture income exempt under section 10(1).

If a person is having only agricultural income suppose Rs. 35 lacs and he wants to file return for the first time, can he do so...???

Is there are chances of getting scrutiny from the Income Tax Department, as total income (although big amount) is exempted...???

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8 Replies

@*CS Siddharth Bumb. * (B.Com, CA Final, CS ) (5270 Points)
Replied 21 June 2012

yes he can file return though he is filing return first time...

yes there are chances of scrutiny because agriculture income is huge....

KRISHNAPRASAD IYER (B.Com , CA Final) (657 Points)
Replied 21 June 2012

agree with siddharth

GOPAL AGGARWAL (DOING NOTHING) (1339 Points)
Replied 21 June 2012

Yatrik, so far I think their is no need to file the return of income. As my friend Sidharth Bumb has already mentioned that if you are filling your first return than due to huge exempt income (Agri. income). your case definitely be selected for scrutiny. And after selection of case for scrutiny I need not to tell you the consequences of the same.

So, in my views their is no need to file the return. And even if he files the return of income HE IS BUYING LITIGATION AND NOTHING ELSE.

So please sit and have rest

*RENU SINGH * (✩ §m!ℓ!ñġ €ม€§ fℓม!ñġ ђ♪gђ✩ ) (21627 Points)
Replied 21 June 2012

Originally posted by : Siddharth Bumb
	yes he can file return though he is filing return first time... yes there are chances of scrutiny because agriculture income is huge....

totally agree ...

GOPAL AGGARWAL (DOING NOTHING) (1339 Points)
Replied 21 June 2012

NOT ONLY CHANCE FRIENDS HIS CASES WILL DEFINATELY WILL BE SELECTED FOR SCRUTINY.

BEACUSE MANY TIMES I HAVE SEEN DEPARTMENTAL SCRUTINY GUIDELINES, WHERE IN IT IS CLEARLY MENTIONED ASSESSEE CLAIMING INCOME EXEMPT MORE THAN (LIMIT NOT REMEMBER) THE CASE WILL BE SELECTED FOR SCRUTINY.

Arun Prasadh (Practicing CA) (49 Points)
Replied 21 June 2012

It is better to file the return.

A person earning Rs. 35 lacs per annum would be transacting in buying in immovable property, bulk mutual fund investments or share purchase, cash deposits of more than 10 lacs in a year in his bank account, etc., These transactions are captured in Annual Information Report.

If a person name is appearing in AIR & has not filed his return, IT Department will send a notice U/s 142(1), asking him to file the return.

My suggestion:

If the person's source of Income is only from agriculture, ask him to prepare a simple statement of assets & liabilities & P&L every year.

With that as a basis file the IT return every year even if the source of income is agriculture & it is exempt. Obviously a person earning Rs. 35 lacs will have some bank interest which he can disclose & pay tax on it every year.

By doing this records are clear & even the IT department comes for any survey or search. Returns filed as agri income would be of immense help. You could show that the source are already shared with IT Dept.

Yatrik Jobanputra (CA Final Student) (170 Points)
Replied 22 June 2012

First of all thanks to everyone....

Actually I am under the same dilemma of Filling the return -

IF I file, the case will come under sructiny and If I don't than one fine day will caught by the department...!!!

Another thing I am also in the view of Mr. Arun Prasad, and wants to clear all books of accounts. Atleast by preparing simple books and clearing accounts year by year, the person could be set free from Future uncertainties.

Suppose I file the return and sructiny comes, and the person produces all the income proofs by way of agricultural bills and so on,

can he than be free from scrutiny and all..???

Dolly Keshri (2 Points)
Replied 17 February 2017

I have a query on agriculture income ..
que is- The income from salary,house property,business &profession,capital gain nd other sources is 81,000 ; 54,000 ; 40,000 ;20,000 ; 69000 respectively thus total income of an individual is 2,64,000 nd agriculture income is 15,000..
so the tax charged on agriculture income or not,?? Nd what's his gross tax liability??