08 March 2016
please solve my confusion suppose my work borwell (hole work) & my nett receipt on borwell work 9 lacs rs. & agriculture income 4 lacs rs., So my income 9+4=1300000 lacs rs., so how my taxable income, in which tax. because 400000 lacs income is tax free income. so how my total income & Which it will be in the slab. 20% ya 30% ??????
08 March 2016
Dear Is it your proprietorship firm?? If yes,then The receipt is not considered as profit. Receipt is sale or turnover amount and we deduct expenses from it to arrive at net profit. Also in case your business income is more than 250000 and agriculture income is more than rs 5000 then the tax is calculated by applying composition scheme. Pls consider the example for more clarification. Example – Let us say that an Individual Assessee has a Total income of INR 7,50,000/- (excluding Agricultural income) and a Net Agricultural income of INR 100,000/-. Then, per this step, Tax shall be computed on INR 7,50,000/- + INR 1,00,000/- = INR 8,50,000/-. Thus, income Tax amount as per this step shall be INR 95,000/- for an individual who is below the age of 60 Years during the P.Y. 2014-15.
♠ Second, add the applicable basic tax slab benefit, as applicable, to the Net Agricultural income. Thus, per our example mentioned above we shall add INR 2,50,000/- to INR 1,00,000/- as the applicable Tax slab benefit available to an individual below 60 Years of age is INR 2,50,000/-. Now we will compute income Tax on INR 3,50,000/- (Tax slab benefit 2,50,000 + Net Agricultural income 1,00,000). The amount of Tax shall be INR 10,000/-.
♠ Third, subtract the Tax computed in Second step from the Tax computed in First step = INR 85,000/-. Thus, this is the income Tax liability subject to deductions, Education Cess etc., as applicable.
This process of computation is, however, followed only if the assessee’s non-agricultural income is in excess of the basic exemption slab.
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