Agri Firms Having Income Above 1 Crore are Under Scrutiny of The I-T Department

Nashik: The Income Tax (I-T) department is in the process of investigating agricultural income above Rs 1 crore filed by tax payers during their annual returns.

The firms or individuals who have agricultural income over Rs 1 crore are under scrutiny of the I-T department. A team of I-T officials recently scrutinised a nursery of a firm located near Nashik.

"The tax payers who have shown agricultural income in their annual returns are under scrutiny. This is as per the circular of the Central Board of Direct Taxes (CBDT) to check genuineness of the income," said an I-T department source.

"The action would be taken against those taxpayers if they are found providing false information," said sources. The source avoided reveals details about how many are the firms or individuals with agricultural income of Rs 1 crore and above.

"There are many farmers or agricultural firms with good income, because Nashik is already known for producing grapes and onions at large. There is no tax recovered on agricultural income, but the income is fix deposited then its interest is taxable. There may be several farmers or firms with income Rs 1 crore or above, but it is difficult to say how many will be such tax payers in Nashik," said Ravi Rathi, chairman of the Institute of Chartered Accountants of India (ICAI), Nashik branch.

Source: http://timesofindia.indiatimes.com/