TaxTMI 
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
X X X X Extracts X X X X
X X X X Extracts X X X X
....d to Board's Circular No. 10/2003 dated 24th 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 Finance Act, 2005 has subsequently raised the exemp....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er 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 from growing and curing of coffee = Rs. 4,00,000 Oth....
X X X X Extracts X X X X
X X X X Extracts X X X X
....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 25% of Rs.7,40,000 = Rs.1,85,000 No return is required to be furnished. (ii) An individual deriving income from growing, curing, roasting and grounding of coffee with or without mi....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 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 grounding of coffee with or without mixing chicory or other flavoured ingredients = Rs. 2,00,000 Other income = Rs. 20,000 Taxable income under Rule 7B(1A) of the IT Rules, 1962 is 40% of Rs.2,00,000 + Rs.20,000 = Rs. 1,00,000 No return is require....