Income Tax Dept probing gains made in agriculture income during demonetisation
PrintListen to this Article
Under the Income Tax (IT) Act of 1961, agriculture income is exempt from taxes. But during the demonetisation period, Income Tax Department officers suspect that excess non-agriculture income or black money was declared as agriculture income.
A senior IT officer said that under the revised Standard Operating Procedures (SOPs) formulated by the Central Board of Direct Taxes (CBDT), cash receipts shown as agricultural income in the book of accounts are under the scanner. During demonetisation, farmers have declared large cash gains after selling non-perishable crops such as turmeric.
In suspicious cases, the IT officers have been asked to scrutinise farm land records for ownership and seek details on agriculture operations. Sales made by the farmers to marketing societies in large quantum is also being looked into, the official said.
The official pointed out that turmeric, after harvesting from the fields and minimal processing, can be stored for a long time. A farmer can legally make ₹40 lakh as tax-free income per year from a five-acre farm. However, during demonetisation, cash generated from turmeric sale was huge. Suspicious movement of money in the purchase of seeds, fertilizers and pesticides is also being probed.
IT officers have also been asked to look at suspicious transactions of companies and compare cash balance as on April 1, 2016 with cash balance as on November 8, 2016 (the day demonetisation was announced). Where required the licences and permissions for running the companies are also being inspected, the official said.
The official added that advance received in business such as car bookings and gold purchase is also being checked for discrepancies. Whether actual sales were made subsequently or a majority of such advances was returned is also being investigated. #casansaar (Source - The Hindu Business Online)
Category : Income Tax | Comments : 0 | Hits : 785
If you earn income other than salary or have multiple income streams, the advance tax deadline falling today—Monday, December 15, 2025—should not be overlooked. Failure to pay advance tax on time, or paying less than the required amount, may attract interest charges that continue to accumulate. As the Income Tax Act operates on a “pay as you earn” basis, being aware of advance tax provisions and the financial impact of delays can help you avoid unnecessary costs and last-...
If you earn income other than salary or have multiple income streams, the advance tax deadline falling today—Monday, December 15, 2025—should not be overlooked. Failure to pay advance tax on time, or paying less than the required amount, may attract interest charges that continue to accumulate. As the Income Tax Act operates on a “pay as you earn” basis, being aware of advance tax provisions and the financial impact of delays can help you avoid unnecessary costs and last-...
As many as 5,44,205 appeals were pending resolution with the Income Tax (IT) Department at commissioner (appeals) level as of January 31 this year, and 63,246 at various Income Tax Appellate Tribunals (ITATs), High Courts, and the Supreme Court, FE has learnt. To be precise, the cases pending in ITATs were 20,266 High Courts, 37,436; and Supreme Court 5,544. The large pendency is even as the Central Board of Direct Taxes (CBDT) has laid emphasis on disposing of income tax appeals in its 10...
The Central Board of Direct Taxes (CBDT) has facilitated taxpayers to file their Income Tax Returns (ITRs) for the Assessment Year 2024-25 (relevant to Financial Year 2023-24) from 1st April, 2024 onwards. The ITR functionalities i.e. ITR-1, ITR-2 and ITR-4, commonly used by taxpayers are available on the e-filing portal from 1st April, 2024 onwards for taxpayers to file their Returns. Companies will also be able to file their ITRs through ITR-6 from April 1 onwards. As ...
It has come to notice that misleading information related to new tax regime is being spread on some social media platforms. It is therefore clarified that the new regime under section 115BAC(1A) was introduced in the Finance Act 2023 which was as under as compared to the existing old regime (without exemptions): New Regime 115BAC (1A) introduced for FY 2023-24 Existing old Regime 0-3 lacs 0% 0-2.5 lacs 0% ...
Comments