TaxTMI 
TaxTMI 
Filing of Return of Income by the Coffee growers being individuals covered by Rule 7B of the Income tax Rules, 1962 - Clarification regarding
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....2006, DATED 16-10-2006 Reference is invited to Board's Circular No. 10/2003 dated 24^th December, 2003 which provided that an individual deriving income from growing and curing of coffee who is not covered by the first proviso to section 139(1) of the I.T. Act, would not be required to file a return of his income if his income from growing and curing of coffee was Rs. 2 lakhs or less. The Finan....
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....wing and curing of coffee and income under all other sources liable to tax in accordance with the provisions of this Act, is equal to or less than the exemption limit (1st slab of the rates of Income-tax) prescribed for individual tax payers in the first Schedule of the Finance Act of the relevant year. Therefore taking Assessment Year 2006-07 as an example, (a) An individual derives income fro....
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....1,35,000 No return is required to be furnished. (d) An individual being a resident in India, who is of the age of sixty five years or more at any time during the previous year relevant to the Assessment Year 2006-07 derives income from growing and curing of coffee = Rs. 7,40,000 Other income = Nil Taxable income under Rule 7B(1) of the IT Rules, 1962 is ....
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.... growing, curing, roasting and grounding of coffee with or without mixing chicory or other flavoured ingredients = Rs. 2,50,000 Other income = Nil Taxable income under Rule 7B(1A) of the IT Rules, 1962 is 40% of Rs. 2,50,000 = Rs. 1,00,000 No return is required to be furnished. (b) An individual derives income from growing, curing, roasting" and gr....