I am aware income from agriculture is tax free. What are the evidences to keep to the satisfaction of tax dept for disclosing agricultural income?
If you sell your products to institutional buyers you will get reciept. or you can declare your income. if it is exorbitantly high it will go for scrutiny and they will take help of agriculture scientist. What they decide will be your income.
If you grow a commercial crop with a good yield you can get certificate of yield from agriculture or horticulture dept.
Not all income from agriculture is tax free. Recently, contract farming has been declared to come under tax.
i dont think we have chartered accountants here dude,and you don’t really sound like a farmer( else you should have known your answers yourself )
better search google for free advice,or hire a professional to manage your wealth.
happy new year
My new year wishes to everyone. Agricultural income has to be defined first. Agricultural income is all income which is generated from agricultural land like revenue from crops, vegetables, trees lease revenue. Poultry, cattle, goat fish, bee hydroponics and other allied functions like value added products nursery are not part of agricultural income. In other words direct produce produced from the sprouting from the soil and sold to any one is exempted from income tax.
You have to Show your Agricultural Income in your return and show the same income under the Column Exempted Income. You need not file any record, but however you have to show the Record when ever IT People during Assesment/Inspection. It is your duty to substantiate the Income derived out of your Agricultural Lands.
I just got a doubt that if we take some 100 acres of land on lease and do the cultivation does the income generated out of this be free of tax. Its just my doubt and anyhow I’m not going to do that
you need to be a farmer or farm labour to lease out a agri land. If your turnover is more than 1cr it goes for scrutiny. if you justify the income is from agriculture then it is tax free.
Couple of months back one IAS officer claimed that he has earned a huge money from agriculture(actually it was corruption money). IT dept sought agriculture scintists help, It was a rainfed land with maize. They declared 50K/acre/annum as maximum income he can generate.
His claim was 20 times high. In this it was verymuch clear.
You can lease 100 acres and do agriculture alone in the sense no integrated farming. The income is not taxable, but you have to keep records foe every money spent inclusive of labour, especially a register to show the attendance, or entry exit register.