i have a doubt i am planning to buy a Residential Plot of 200 Sq Yards in Hyderabad near manasanpally Sir Do i have to pay ANY Tax for the PLOT????

please reply to my mail as soon as possible sir

note: the above business is on agricultural land in rural area and the gross receipts were about 25 – 30 lakhs per annum. Also advise us whether we require to file a return if we start the business this AY.

we are installing a cold store unit and there is exemption in central excise tax on the purchase of machinery from manufacturer and we have provided a bank gurantee in favour of assistant commissioner for this and now they are asking for the registration of farm with central excise . Is it necessary to register the farm with them as it is only service unit for taking the benifit of central excise

Thanks in advance.

Ritesh

However, since the Kiran has trf. his money without any consideration to his wife hence all the income arising in future from the commercial premises purchased will be clubbed with the income of the Kiran. Please take a note of it..

Thanks,
Lakshmaiah

What should he do for non deduction of TDS on interest on bank deposits even if it exceeds RS.10000/- p.a.?

pls suggest me if i will be earn some profit from this Agricultural land is this taxble or not.

Is Agriculture Income by a private ltd company taxable in India?
We want to form a private limited company for doing agriculture. Please advise.

Thanks in advance.

hope i will receive ur reply as early as possible

“Land area selected for greenhouse cultivation in Garhshankar (Hoshiarpur) falls under classification of rural land. Agricultural activities are carried out on adjacent lands also. The project envisages setting up of nursery, greenhouses and packhouse with a transit cold storage of capacity 25 MT. Land will be taken on lease for overall operation from cultivation to farm gate delivery. Post harvest management infrastructure including sorting/grading hall, quality control room, pre-cooling, cold storage, loading and unloading platform will be part of the packhouse.
Hi-tech cultivation practices are to be adopted for raising high value vegetable crops. High value exotic vegetables such as cherry and beef tomato, colored capsicum, European cucumber and herbs will be raised and in future, other crops can also be selected according to domestic market demand and export opportunities.”

Regards,
Karun Nagpal

This query relates to application of the provisions of Wealth Tax provisions to Urban land used for Agricultural purposes :

This Query primarily refers to taxability or otherwise of Agricultural Lands situated within Urban areas and being used extensively for Agricultural activities. In such a situation some of the Wealth Tax Officers / Assistant Commissioner of Wealth Tax / Dy. Commissioner of Wealth Tax / Commissioner of Wealth Tax / Commissioner of Wealth Tax ( Appeals ) have been consistently taking a stand that such Agricultural Lands fall with the purveiw of Wealth within the meaning of Section 2(ea) (v) – which defines Urban Land. For the sake of ready reference the provisions contained in Section 2(ea)(v) are reproduced as below :

Weath Tax is chargeable only on the assets specified in Section 2(ea). Section 2(ea) (v) states that :

Urban Land, being land situated in any area, within the jurisdiction of a muncipality or a cantonement board which has a population of not less than 10000; or within 8 Kilometeres from the local limits of such muncipality or a cantonement board, as the Central Government may notify.

However, Urban Land shall not include :

1. Land on which construction of a building is not permissible under any law or the land on which building is constructed with the approval of appropriate authority,

2. any unused land held by the asseessee for industrial purposes for a period of two years from the date of its acquisition by him, and

3. any land held by the asseessee as stock in trade for a period of ten years from the date of its acquisition by him;

It may be noted here that Construction of buildings on Agricultural Lands except for a single unit of Farm House less than 500 Sq. metres is not permissible under the local laws of each state,

Further the section itself is using the term ” Urban Land “, which does not signify Agricultural Lands.

Also request your goodself to kindly throw light in veiw of : CIT v. Siddarth J. Desai (1983) 139 ITR 628 (Guj), CIT v. Manilal Somnath (1977) 106 ITR 917 (Guj).

And Chennai High Court Judgement in the case of CWT Vs. E.Udayakumar ( 2006 ) 284 ITR 511 ( Mad ), Tara Singh vs. DCWT ( 2006 ) 97 ITD 482 ( Amritsar Trib ), Charan Paul Singh Mann & Jagra Singh Mann Vs. ACWT ( Chandigarh Tribunal ) and ITAT Hyderabad Bench in the case of Penzal Investment & Trading Co. (P) Ltd. v. Assistant CWT (2000) 75 ITD 39 (Hyd-Trib). In this case the Hyderabad Tribunal relied upon / cited various land mark judgements while discussing the issue regards taxability of Agricultural Lands situated in Urban areas and used for Agricultural purposes.

Needless to say I would be either in touch with you over Telephone or met you in person as regards Consultancy Charges are concerned, or I would request you to kindly send a e-mail in this regards.

Request your goodself to kindly mail the opinion on the e-mail address given below.

Regards,

CA.KAMESH KUMAR.
CHARTERED ACCOUNTANT.
KRISHNA RAO AND COMPANY,
CHARTERED ACCOUNTANTS,
AURANGABAD.431001.
TEL.NO.(OFF) 0240-2337153/2323353
TEL.NO.(RES) 0240-2338922
MOB.NO.+919822774427.
email : krco@bsnl.in; krco@sancharnet.in