Refund of tax on Agricultural Income

Refund of tax on Agricultural Income

Refund of tax on Agricultural Income: Where any assessee satisfies the Collector of the Sub-Division that the amount of tax paid by him under the Act and these rules for any income year exceeds the amount with which he was properly chargeable under the Act and these rules for that income year, he shall be entitled to refund of the amount so paid in excess.

An application for refund of tax shall be made by the assessee in form ‘E’ within two years of the end of the assessment year to which it relates.

Where an application for refund is made under sub-rule (2) the Collector of the Sub-Division shall determine by an order in writing the amount of refund on being satisfied that such amount is due to the applicant and where he is not so satisfied he may by an order in writing reject the application.

The Collector of the Sub-Division may before making an order under sub-rule (3) call for such particulars, documents and evidence as he may require.

Where as a result of an order passed in appeal, review or revision under the Act, refund of any amount becomes due to the assessee the Collector of the Sub-Division shall refund the amount to the assessee irrespective of whether he has or has not made any claim in that behalf.

Where refund of any amount becomes due to an assessee the Collector of the Sub Division shall order refund in accordance with the provisions of the Treasury Rules (Punjab) and the same shall be paid through voucher on Form S.T.R. 34.

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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