Self-assessment of agricultural income

Where the return of total agricultural income for any income year furnished by the assessee under rule 5 qualifies for acceptance in accordance with the provisions of a scheme of self-assessment made by the Board of Revenue, with the approval of Government, for that year, or under any instructions or orders issued thereunder, the Collector of the Sub-Division shall assess by an order in writing the total agricultural income of the assessee on the basis of such return and determine the tax payable on the basis of such assessment.

Explanation.- For the removal of doubt it is hereby declared that a return of total agricultural income furnished under rule 5 does not include a return of total agricultural income furnished under rule 7.

Notwithstanding anything contained in sub-rule (1), the Board of Revenue or the Collector if he is so authorized by the Board of Revenue in this behalf, may in accordance with a scheme referred to in sub-rule (1) select out of the returns referred to in that sub-rule the cases or classes of cases or assessees or classes of assessees howsoever determined, for assessment under rule 11 and the Collector of the ¹⁶[ Sub-Division] shall proceed to make the assessment under that rule or if the circumstances so warrant, under rule 12 accordingly.

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).