The Hindu Business Line : CBDT clarifies on filing of I-T returns by coffee growers

THE Central Board of Direct Taxes (CBDT) has clarified that `individual' coffee growers deriving income of Rs 2 lakh per annum or less from growing and curing are not obliged to file their returns to the income-tax department.

This dispensation would, however, not be available for those individual growers who get covered under the one-by-six criteria for filing I-T returns.

In the case of those individual growers who also roast and grind coffee besides curing it, the board has said in a circular that such growers are not obliged to file I-T returns if their income from such activities is Rs 1.25 lakh per annum or less. This dispensation would not be available for those individuals who get covered under the one-by-six criteria norm for filing of tax returns.

The I-T rules currently provide that income derived from sale of coffee grown and cured by the seller would be treated as "business income" and that 25 per cent of such income would be deemed to be liable to IT.

The rules also specify that 40 per cent of "business income" would be the amount liable to I-T, if the coffee growers were to engage in activities such as roasting and grinding, besides growing and curing.

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