Income Tax: Purchase of agricultural land does not require disclosure in ITR – The Financial Express

Clipped from: https://www.financialexpress.com/money/income-tax/your-queries-income-tax-purchase-of-agricultural-land-does-not-require-disclosure-in-itr/2385993/

You shall be required to file an ITR only if your income from running a beauty salon exceeds the threshold of Rs 2.5 lakh.

Relevantly, a purchase of an agricultural land does not entail any income and thus requires no disclosure in the ITR.Relevantly, a purchase of an agricultural land does not entail any income and thus requires no disclosure in the ITR.

By Chirag Nangia

I am a housewife and run a beauty parlour service at home. I have to purchase agricultural land costing about `6 lakh. Do I need to file ITR this year before purchasing the land?
—Aanandi Sagulale

An individual is required to furnish return of income compulsorily only if his/her gross total income in a financial year, as computed in accordance with the provisions of the Act, exceeds the basic exemption limit. The exemption limit for the assessment year 2021-22 for an individual below 60 years of age is Rs 2.50 lakh. Relevantly, a purchase of an agricultural land does not entail any income and thus requires no disclosure in the ITR. You shall be required to file an ITR
only if your income from running a beauty salon exceeds the threshold of Rs 2.5 lakh.

I have filed my returns for AY 2021-22 considering TDS deductions by banks on FD interest as per Form 26AS. However, IT department has considered only a part of the above TDS deductions in its calculations while processing and has sent me a tax demand notice. Request you to advise me on the action I should take in this regard.
—Shankar. S.

 Where there is a mistake in an order or intimation, which is apparent from the record, the taxpayers can seek ‘Rectification under Section 154’ of the Act. If you have been allowed less credit than what you had claimed in the return, you are advised to file a rectification request by logging in to the e-filing portal using your user ID and password. Under the tab Services, click Rectification>New Request.

I am a freelance writer working for foreign clients. I have income from writing, savings account interest and government stipend for PG studies. Can I file ITR-4 under 44 ADA? It reduces my tax liability. Would that
be an issue? If I start investing in shares and mutual funds, will that change anything? Will I still be able to file ITR-4?
—Ankit

Writing is not a profession eligible for computation of profits on presumptive basis. Therefore, you shall not be entitled to claim the benefit of presumptive taxation under 44ADA.

The writer is director, Nangia Andersen India. Send your queries to fepersonalfinance@expressindia.com

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