Return of total Agricultural Income

Return of total Agricultural Income: Every person who is required under the Act to furnish a return of total agricultural income for any income year shall furnish such return in Form ‘A’ on or before the thirtieth day of September next following the income year;

Provided that the Collector who has to assess and collect the tax under these rules may on sufficient cause being shown, extend the date for the delivery of the return so however that no extension of time for a period or periods amounting in all to thirty days shall be allowed.

In case total agricultural income of an assessee in respect of the income year pertains to one Sub-Division only in the Punjab, return under sub-rule (1) shall be furnished to the Collector of that Sub-Division.

In case the total agricultural income of an assessee in respect of the income year pertains to more than one Sub-Division in the Punjab, he shall indicate in his return under sub-rule(1) his choice regarding Collector of the Sub-Division, within whose jurisdiction a part of cultivated land of the assessee during the income year was situated and who shall assess and collect the tax and the return shall be furnished to the Collector of that Sub-Division:

Provided that such choice shall not be different from the one given by the assessee in respect of the same income year under the Punjab Agricultural Income Tax Rules 1997:

Provided further that where no such choice is given by the assessee, the tax shall be assessed and collected by the Collector of that ⁸[ Sub-Division] within whose Jurisdiction the assessee held during the relevant income year major portion of the cultivated land.

The assessee shall deliver personally or through an authorized agent, the return under sub-rule (1) in the office of the Collector of the ⁹[ Sub-Division] who has to assess and collect the tax under these rules. The office of the Collector of the ¹⁰[ Sub-Division] at which the return is so delivered shall issue acknowledgement receipt in Form ‘B’.

The assessee shall also send by post a copy of the return to every other Collector of the ¹¹[ Sub-Division] within whose jurisdiction the assessee held during the relevant income year part of the cultivated land.

The return in Form ‘A’ shall, on the date of receipt in the office of Collector of the  Sub-Division be entered in register in Form ‘C’.

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).