Limitation for assessment in Agricultural Income
Limitation for assessment in Agricultural Income: No assessment under rules 9, 11 or 12 shall be made after the expiration of two years from the end of the assessment year in which the total agricultural income was first assessable,
Notwithstanding anything contained in sub-rule (1) where a return of total agricultural income has been filed after the end of the financial year in which the last date of filing of such return specified in rule 5 falls, no assessment under rules 9, 11 or 12 shall be made after the expiration of two years from the end of financial year in which the said return is filed.
Notwithstanding anything contained in sub-rule (1) where for any income year, an assessee has failed to furnish return of total agricultural income no assessment under rules 11 or 12 shall be made after the expiration of two years from the end of the financial year in which the notice under rule 6 was served.
Agricultural Income and its Taxation in Punjab
The Agricultural Income is Exempt from tax under Income Tax Ordinance, 2001 and in Income Tax Ordinance, 2001 Agriculture Income is defined and explained under section 41.
In order to claim exemption of Agricultural Income as per provisions of 41 and section 111(1)(d) of the Income Tax Ordinance, 2001.
Therefore, provincial law on agriculture income have fundamental importance to conclude on whether such income is exempt from tax or not, while computing individual income tax liability under the provisions of Income Tax Ordinance, 2001.
These Punjab Agricultural Income Tax Rules, 2001 explains the procedure of exemption, forms used, Method of accounting, Payment of tax with return of total agricultural income, Return of total agricultural income, Notice for furnishing return of total agricultural income, Revised return of total agricultural income, Self-assessment, Assessment on the basis of return, Notice for production of books of account, Assessment on production of accounts, evidence, Best Judgment assessment, Limitation for assessment, Additional assessment, Payment of tax on demand, Collection of tax as arrears of land revenue, Suspension and remission of tax, Refund of tax, Maintenance of Accounts etc.
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