Additional Assessment of Agricultural Income

Additional Assessment of Agricultural Income

Additional Assessment of Agricultural Income: If in any year, for any reason, any agricultural income chargeable to tax under the Act has escaped assessment; or the total agricultural income of an assessee has been under assessed or assessed at too low a rate or has been the subject of excessive relief or refund under the Act or these rules.

In such case the Collector of the Sub-Division may at any time subject to the provisions of sub-rules (2) and (3) issue a notice to the assessee containing all or any of the requirements of a notice under rule 6 and may proceed to assess or determine by an order in writing, the total agricultural income of an assessee or the tax payable by him as the case may be and all the provisions of the Act and these rules shall, so far as may be, apply accordingly:

Provided that the tax shall be charged at the rate applicable to the assessment year for which the assessment is made.

No proceedings under sub-rule (1) shall be initiated unless reliable information has come into the knowledge of the Collector of the Sub-Division.

No order under sub-rule (1) 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.

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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To read more on Agricultural Income and Taxation click here (Agricultural Income and its Taxation in Punjab).

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