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Paan business beetle leaves

Zarra.Belal.Nomani (CS Final B.com CA Final.) (167 Points)

04 April 2014

hola!!!!

i am really confused ,it would really of great help to me if any 1 among u can resolve my query !

my query is = a person is doing business of selling paan beetle leaves in a place ,his income for the said period ie ay 2006-07 is not more than the amount chargeble to income tax (15 lakhs). is he liable to file ITR ,the person is illetrate he dosent have any knowledge about pan forget about income tax .

is the income derieved from sale of paan / beetle leaves is agriculture income ????/

his transaction is mostly in cash , which he deposit in bank in next day from the date of receipt .

which at times exceed the limit of 20000 .

the person dont even have pan card . is there any other provison for paan / beetle leaves .

thank you

regards zarra belal nomani

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7 Replies

(Guest)

1. If his Income is 15L, he has to pay income tax and file return (basic exemption limit for IT in Ay 2006-07 is 1L)

2. Illitracy is not an excuse under Income tax Act

3. If he deposits money in cash in savings account total exceeding 10L he might get a notice from It dept

4.In my view, selling of Paan/ betel leaves(after mixing other ingredients like chuna etc) is not agricultural activity just like a restaurant is not agricultural activity

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Zarra.Belal.Nomani (CS Final B.com CA Final.) (167 Points)
Replied 04 April 2014

thank you Madhavi Pandit !!!

but his dealing is mainly in cash , as at that 2005-06 banking system was not so sound in rural india , still rural people transact in cash . and in the abscence of banking facility the said person was forced to carry on his paan business in cash .and moreover i think that the ITO should consider the person's beseech . still the rural literacy ratio is lacking far behind . so the excuse of illeteracy should be a reasonable excuse .

Zarra.Belal.Nomani (CS Final B.com CA Final.) (167 Points)
Replied 04 April 2014

# thank you Madhavi Pandit

(Guest)

He should file Income tax return now for atleast AY 2013-14.

(In my view he should file IT returns for the previous years too if tax was payable in any of the years. I know that the earlier returns are time barred, but they would be accepted in the interest of revenue)

Zarra.Belal.Nomani (CS Final B.com CA Final.) (167 Points)
Replied 09 April 2014

i met the assessing officer , he said to file the return of concerned year ie 2006-07 , how can it be possible now ????

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(Guest)

Youcan ask him to provide the form for filing the return. Or file in letter form after paying the tax.

Income Tax Wala: (Fin. Expert) (Chartered Accountants) (2015 Points)
Replied 10 April 2014

Dear

if selling is doing agricultural operation activity to grow those paan beetal than that income is not taxable (assuming that there is no other income)

if he is just buying paan leaves from farmers and than sell leaves to others than it will constitute Business income and liable to file ITR for A.Y. 2006-07. But legally return has become time barred so you can not file return for said Assessment Year so forget that return.

DON'T DISCUSS WITH AO JUST FORGET WHAT EVER HAPPEND EARLIER.

now you decide what type of income you have and start filing return now