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The question is whether a registered person is required to charge tax on sale of agriculture produce or whether he enjoys exemption on sale of agriculture produce since he is an agriculturist.
It’s a crisp Sunday morning. A sleek BMW winds its way past Gurgaon’s high-rises, taking a sharp turn off the expressway onto a dusty trail flanked by green fields. The destination? A luxury “farmhouse” where the owner hosts weekend brunches, grows exotic kale, and claims lakhs of rupees as tax-free agricultural income.
For decades, agricultural income and sale of farm land has been a subterfuge to escape tax, convert black money into white. Now, a nationwide probe is underway with the income tax (I-T) department homing in on cases in various states where persons and entities have shown agricultural income of ₹50 lakh or more without owning any land.