Agricultural income is tax-free

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: HUF.

3. Interest paid by a bank, including a co-operative bank, or a post office in respect of notified schemes suffers TDS @10% if the interest, received after 1.6.07 exceeds Rs 10,000; The limit is Rs 5,000 for interest received before this date. This limit is applicable per branch of the bank.

4. If the HUF has suffered TDS and the tax liability is nil, you are entitled to a refund but the only practical way to get the refund is to file the tax returns.

5. Finally, even if you are within your rights not to file any tax returns, it is advisable to file it to maintain continuity. You may later write to the ITO stating that since the income of the HUF has been below the tax threshold, the HUF shall not file the income-tax return hereafter.

6. We presume you have accounted for the long term capital gains earned by selling the property during FY 06-07.

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