Income Tax Alert: The Income Tax Department keeps an eye on the money transactions in the country. It also collects tax on income above the prescribed limit. Many people try to save tax by wrong means by becoming more clever, which the Income Tax Department fails during its investigation. The Income Tax Department will take action against taxpayers who save tax in some special way.
Income Tax Alert: If you are trying to save tax in a special way by fooling the Income Tax Department, then you may get into trouble. The Income Tax Department is going to take action on these matters after investigation. There are many such cases of the Income Tax Department, in which an attempt has been made to cheat the Income Tax Department in a completely wrong way.
Exemptions taken in this way will prove costly
The Income Tax Department (Income Tax rules) is going to take action against those who save income tax in the name of farming in the wrong way. If you also save tax in this wrong way, then action can be taken against you too. The Income Tax Department is keeping an eye on those people who are saving income tax in the name of farming in the wrong way. Income from farming is income tax and GST free.
Cases have come to light in many states
For decades, there is no tax on income from farming and selling land. But, many taxpayers are using it to convert black money into white and save tax. The Income Tax Department is investigating such cases across the country. Cases have come to light in many states of the country, in which people and companies have shown income of Rs 50 lakh and more as farming income without having any land.
The Income Tax Department is keeping an eye on these cases
The Income Tax Department (Income Tax Department News) is keeping an eye on many such cases, which are wrongly showing farming income of Rs 5 lakh per acre. Generally, such figures are not matching. It does not seem possible to earn five lakhs in one acre and if the department investigates this matter deeply, there will be chaos in many places. Politicians can also get caught in the investigation.
This is how the investigation of these cases started
The investigation of such cases has been started due to some cases in Jaipur. In some cases, people had shown farming income of more than Rs 50 lakh in the Income Tax Return. The department has kept these cases in the list of high-risk cases. Generally, in these identified cases, the department is investigating the claims of the tax payers. These cases are of 2020-21.
Investigation will be done through satellite
In the cases investigated by the Income Tax Department, taxpayers (Income Tax Department) will have to prove that they have used their land for farming. In such cases, the agricultural land can be investigated through satellite.
These are outside the income of farming
Under the rules of the Income Tax Department, plotting and selling of land, selling city land, renting farm houses, poultry farms and other similar activities are not included in the income of farming. People will have to pay tax on these lands. Farming income can include income from selling crops and rent of land. There is no tax on selling farm land.
Tax will be levied in such cases
As a capital asset, farm land can be either in a village or in a city. There is no capital gain tax (Income Tax Department) on farm land. On the other hand, capital gain tax is levied on farm land in the city. Apart from farmers, people also buy farm land. They use it for other purposes. For this, necessary approvals and fees have to be paid.
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