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Tax benefits agriculture trader

Rahul Gupta (Manager) (153 Points)

20 November 2016

Agriculture incomes are tax free, Is there any special benefit , available to vendor who sell seeds and insectides. Is it ok to file tax return u/s 44AD

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4 Replies

rohit singhal (ca) (24 Points)
Replied 20 November 2016

income earned from sale of seeds and insecticides are not of agriculture nature hance is not tax free. however you can file your incometax return according to presumptive income provisions U/s 44AD, provided your turnover is not subject to Tax Audit.

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Manish Thakkar (manager- taxation) (128 Points)
Replied 20 November 2016

read definition of agriculture income , said transection is not to be considered as agriculture income hence not the tax free
further any business can file return u/s 44AD provided tax audit is not applicable to him/her

Mukesh Kumar (Accounts Manager) (1466 Points)
Replied 21 November 2016

AGGRECULTURE INCOME MEANS YOU EARN INCOME BY THE AGGRECULTURE PROCESS AND USE AGGRECLUTURE LAND FOR GROSS SEEDS, THAN YOU INCOME IS TAX FREE OTHERWISE YOU INCOME IS TAXBLE

Rahul Gupta (Manager) (153 Points)
Replied 21 November 2016

Under section 44AD, I can show minimum 8% profit in trade.

Please advice in case of partnership trading firm, after 8% profit, whether salary to partner and interest is allowed. ( i was not able to find anyoption in ITR4S)

it is ok to use ITR4, in case i want to show 5% profit for partnership and also claim interest and salary to partners.