Computation of income for individual

This query is : Resolved 
 

(Querist) 13 October 2012

Say,Income earned from business/profession is Rs.255000/- Income from agriculture Rs.185000/-

I need a clarification as to
1) when agriculture income is fully exempted, why we need to show it while computing income/taxable income. further, in the IT form it is mentioned "for rate purpose only" what is meant by "for rate purpose only"

2) The total income for above is Rs.440000/-. Can we not straightaway consider2,55,000/- and calculate tax liability?

I got to answer the above to an assessee having business and agricultural income

regards


CA Siddhartha Bhardwaj (Expert) 13 October 2012

Where an assessee has income from both agricultural source and non-agricultural source, then the tax liability is calculated by the following formula:

Tax on total income including agriclutural income
Less: Tax on (agriclutural income + exemption limit)

vinaykumar deshpande (Querist) 14 October 2012

what is the exemption limit? will u kindly show me the computation of income..

thanks




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