Income Tax: Those who take tax exemption by declaring their income from farming should be careful..

Income Tax news: People who take tax exemption by citing income from agriculture are now seen getting caught in the clutches of the Income Tax Department. The Income Tax Department has recently intensified its surveillance to identify these people. Farmers who have tried to avoid tax (new income tax rules) by hiding their income can now come under strict scrutiny. The department has started a special campaign to keep an eye on such cases, due to which lakhs of people have now come on this radar. Department officials say that those who were taking the wrong advantage of this exemption (income tax exemption) will not be spared under any circumstances. Under the action, now the investigation of documents of many people has started and soon shocking results will come out. Agricultural income has been shown up to so many lakhs- People have been resorting to income from agriculture and land sales to save tax (Agriculture land tax) for a long time, which was also used to whiten black money. Now the Income Tax Department is investigating these cases across the country. The department is paying attention to those cases where people are showing agricultural income of 50 lakhs or more without owning any land. Apart from this, such cases are also being investigated where agricultural income of 5 lakhs per acre has been declared, which does not match the general figures. This investigation may have an impact in some areas, especially where indirect land ownership of politicians and influential persons is involved. That is, many big fishes can also get caught during the investigation.

The investigation will be done due to this suspicion-

Income from farming is exempted from income tax and GST (GST discount on agricultural land), but recently some cases have been exposed in an investigation. In these cases, some entities were claiming agricultural income of more than Rs 50 lakh in their income tax returns. The department (Income Tax Department) suspects that there may be irregularities in these claims and it is estimated that there may be fraud in it. Investigations have been initiated based on this suspicion, to ensure that the claims are correct and no rules are being violated.

Do this to protect yourself -

Farmers who use land for agricultural purposes are required to submit the correct proof of their work. Especially, when satellite images are used to verify that agricultural activities are taking place on the land. On the other hand, income that comes from sources other than agriculture, such as development and sale of land, sale of agricultural land in cities, or renting out farmhouses commercially, activities like poultry farming, are not considered eligible for tax relief. Such income cannot be reported to save tax (tax saving rules) and it is necessary to pay tax for it.

This is how you can get tax exemption -

Income from agriculture (Income tax slabs) can include the sale of produce from farms or the rent of agricultural land, even if it is located outside urban areas. In addition, there are tax exemption rules for income from agricultural land in certain places, such as some areas where the population size is low. Profits from selling agricultural land can also be considered tax-free, as long as it falls under a special category under Section 2(14)(iii) of the Income-tax Act, 1961. If there is no record of the land transaction, there may be confusion about the sale, but if all the property documents are presented correctly, it can be proved that the land deal took place.

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