Answer

1. F

   Facts

   Agricultural income from land in India is exempt, but you must show it is genuine. The officer will look for land records, crop sale receipts and a reasonable yield. Exempt income still needs to be shown in the return.

2. P

   Provisions and law

   • Sec 133(6) (now Sec 252(1)(a))The officer can call for information useful for or relevant to any enquiry or proceeding
   • Sec 10(1) (now Sec 11)Agricultural income is exempt, though it is added for rate purposes when other income crosses the limit
3. A

   Analysis

   Sec 10(1) exempts agricultural income, but officers often doubt large cash deposits claimed as farm income. Show land ownership or lease, crops grown, mandi or buyer receipts and an income in line with the land size, for example 5 acres of wheat rather than 1 acre claiming ₹20 lakh. Agricultural income above ₹5,000 must be shown in ITR-2 or above, not ITR-1. If part of the deposit came from another source, explain that separately.

4. C

   Conclusion

   1. 1Gather land records and crop sale receipts.
   2. 2Prepare a simple yield and income working.
   3. 3Match cash deposits with sale dates.
   4. 4Reply with documents and confirm the income was shown in the return.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.