Income Tax : The Income Tax Department has issued detailed FAQs explaining the meaning, computation, and tax treatment of agricultural income u...
Income Tax : Many taxpayers receive notices despite exemption due to AIS-ITR mismatches. The case highlights that non-reporting of even exempt ...
Income Tax : The new law narrows the scope of agricultural income by introducing strict conditions and exclusions. It emphasizes documentation ...
Income Tax : The issue is whether agricultural income affects eligibility for rebate under Section 87A. The article explains that legally, tota...
Income Tax : The case explains how agricultural income remains tax-free under Section 10(1) but affects tax rates on other income. Key takeaway...
Income Tax : The issue concerns high-pitched additions proposed under faceless scrutiny even where agricultural income is exempt and fully docu...
Income Tax : ITAT held that agricultural land within the prescribed municipal distance is a capital asset and restricted the on-money addition ...
Income Tax : The ITAT held that the addition under Section 69A could not be sustained as the assessee had produced land records, agricultural s...
Income Tax : The court examined whether reassessment could proceed without any incriminating material from search. It held that absence of such...
Income Tax : The issue involved classification of land for capital gains taxation. The Court held that revenue records and evidence of agricult...
Income Tax : The issue involved denial of exemption on sale of agricultural land. The Tribunal held that the land met conditions of Section 2(1...
Income Tax : CBDT circular on C&AG report findings. Directs AOs to verify land records, sales, and expenses to ensure correct exemption of agri...
Understand the concept of capital gains tax on agricultural land as per the Income Tax Act. Learn about the definitions and exemptions related to capital assets.
ITAT Mumbai held that apart from the purchase and sale deeds of conveyance and 7/12 extracts from land revenue records, no other evidence has been brought on record by the assessee of having cultivated the land or carrying any agricultural activity. Accordingly, the same is treated as ‘capital asset’.
Agriculture is exempt from income tax under Section 10(1). Taxes on agricultural income falls under Entry 46 in ‘State List’ under the Constitution of India. Thus, only the State Governments are competent to enact legislations for taxation of agricultural income and levy income tax. Thus, farmers who have no other sources of income are not required to file income tax returns.
No distinction between compensation for compulsory acquisition of agricultural & non agricultural land for income Tax exemption under RFCTLARR Act
A. Nagarajan Vs ITO (ITAT Chennai) Upon careful consideration of factual matrix, it emerges that the assessee’s land has been acquired by NHAI for which the assessee has been compensated at certain rates. On one of the parcels of land, a farm house is situated for which separate compensation has been paid. The primary argument […]
Even though the agricultural land was converted for non-agricultural purposes, but cultivation of land continued till the date of sale of the land. Thus, the land should have been treated as agricultural land and exempt from capital gain in view of section 2(14).
Shrikrishna Khandsari Sugar Mills Vs ITO (ITAT Pune) The only issue raised in this appeal is against the confirmation of disallowance of Rs.4,19,970/- made by the Assessing Officer (AO) in respect of agricultural expenses. Briefly stated, the facts of the case are that the assessee has been engaged in manufacturing and trading in Khandsari sugar […]
Madhusudan Dhakad Harda Vs ITO (ITAT Indore) If a person has only agricultural income and no other income, then no addition can be made to the total income unless and until the AO proves that the assessee has any other source of income which is taxable under the Income-tax Act. Since the agricultural sector in […]
Assessee had not explained expenses incurred for earning agricultural income, Assessing Officer was to be directed to make a disallowance to extent of 25 per cent of expenditure on account of earning of agricultural income and pass an order accordingly
Clause (iii) of section 2(14) specifically excludes agricultural land of the description given therein from capital asset which means that agricultural land was outside 8 Km. of municipal limits. Accordingly, agricultural land purchased by assessee was not a capital asset and, therefore, section 56(2) (vii)(b) was not applicable to assessee’s case.
