Income Tax: Now there is no mercy for those who save tax like this, the Income Tax department will take big action..

Agriculture income is taxable: India is an agricultural country. In such a situation, many great schemes are run by the Government of India for the farmers. Even the government has exempted the farmers from tax (tax on agriculture income). In such a situation, some people try to save tax by declaring farming income. In such a situation, now the department has informed that strict action is going to be taken by the department against these people. Let us know in detail about this update of the Income Tax Department.

Income Tax Department started action -

The income Tax Department is investigating cases where unrealistic agricultural income of up to Rs 5 lakh per acre has been declared. Does not match the general trends and publicly available data at all. How deeply this matter is investigated by the tax office (Agriculture department) depends entirely on this. This investigation can also stir up some areas. Especially when it comes to direct and indirect land ownership of politicians and other influential parties, then there can be trouble in it.

Know why the investigation is being done-

Under the tax law, agricultural income is also exempted from income tax and goods and services tax. The current investigation matches some cases related to the Directorate of Income Tax Investigation, Jaipur. It has also identified those institutions that used to claim an agricultural income of more than Rs 50 lakh in their income tax returns. The department feels that the possibility of scams in such claims is very high. Due to this, its investigation has also started.

Do this to avoid-

These farmers identified by the department have also been given sufficient proof of using the land for agricultural purposes. Especially since satellite images have been used earlier to confirm agricultural activities. Income from non-agricultural sources, such as earnings from land plotting and sale, sale of urban agricultural land, renting out farmhouses for commercial use, poultry farming, and similar activities are also not eligible for tax exemption in any way. It is very important to report them for tax.

The exemption is available on agricultural income-

Agricultural income includes the sale of agricultural produce or rent from land that is completely outside the municipal limits. Areas that have a minimum population under the law. Tax-free income from agricultural land can also be only from capital gains arising from the sale of that agricultural land use. These do not fall under the definition of capital assets as defined in section 2(14)(iii) of the Income Tax Act, 1961.

Accordingly, in the case of the sale of agricultural land (rules for agricultural land), the details of the land cannot be seen in the income tax returns or the records of the tax department. Therefore, doubts are arising which it is being clarified with the agreements of land sale (selling rule of agricultural land). However, on presenting the transaction records, this conclusion can also be drawn.

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