Computation of income for individual

This query is : Resolved

vinaykumar deshpande (Querist)
Follow

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

CA Siddhartha Bhardwaj (Expert)
Follow

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

vinaykumar deshpande (Querist)
Follow

14 October 2012 what is the exemption limit? will u kindly show me the computation of income..

thanks

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok