Income Tax Return in Agriculture.
Income Tax Return.
What is income tax return-
Whatever we earn in one financial year is income to us. In case of salary based employee, whatever he earn in a financial year is income in which the amount is deducted which is exempted or tax free from the total income. After deducting this amount(Expenses or savings) the remaining income is taxable. there are so many exemption money which can be asked from a chartered accountant or may be searched on google.
But in case of farmer and a business men whatever he earn in one financial year is income to him. In this total income the expenses in business or in cultivation in crop or other agriculture work and the other exemption like a employee, same exempted amounts are deducted from the total income. Now the remaining amount is taxable. But in case of farmer whatever the income of the farmer from the agriculture is tax free besides registered agriculture business, income from these registered businesses is taxable.
Income tax for farmer- the farmer whatever he earn from the agriculture by cultivating the land or by growing the crop is fully tax free, so the farmer should not worry about the income tax.
Then by Income tax return- there is no tax on the income of the farmer then he should think why he should file the income tax return. But if a farmer access his income by the help of chartered accountant, it will be very useful to the farmers in many way.
By filling the income tax return farmer makes a written and proved record of the income. This record will help the farmer at the time of applying for the loan in the bank. Most of the farmer knows that when they apply for the loan in the bank. the bank refused to give loan to them . but if a farmer is filling the income tax return every year then this record of his income will help the farmer in taking loan from the bank without any hurdle.
That why the income tax return filling for the farmer is essential.
sometime farmer establish a small business at his field like Poultry, Pisci culture, Dairy or Seed Production at small level. Registration of these small business are not necessary. when farmer is doing these businesses from a long time and he has well knowledge about these businesses. he also know how much is the profit in this kind of business and he also earning profit from these. Now his desire will be that business has more local demand so this business should be done at some large scale so he will need the loan. Then if a farmer has the income record by filling income tax return he will get loan easily from the bank. Now a days young, well educated new generation is coming in agriculture they want to use new technique like poly house, hydroponics, seed production, new machinery etc. so they want a some big amount of the money. Because agriculture is business which require investment.
Rate of interest of the loan in the bank is very low for the farmer in comparison to employed person.
The income tax return filling is very easy for this search a chartered Account in your nearby city he will file your income tax return easily. the charges for this is very low 500-1000 Rs/person. To file the income tax return farmer will have to give the bill of his input(fertilizer, seed, Pesticides,Machinery or animal food etc.) and other thing purchased by him at time of cultivation of crop or in other agriculture work. other expenses detail should be given.