GOVINDA REDDY (Accountant) (44 Points)
21 January 2010i have some income from business and i have agricultural income also so how to calculate the tax
FATEMA
(CHARTERED ACCOUNTANT)
(719 Points)
Replied 21 January 2010
You have to ignore the agricultural income as it is fully exempt from tax and then apply the slab rates to the remaining income and calculate tax.
Anumanchipalli Sathikonda
(Tax Consultant)
(1349 Points)
Replied 21 January 2010
Mr. Govinda Reddy
and
Ms.Fatema
Every Finance Act contains the provisions how to calculate tax. In the case of persons who are having income from agriculture, the net agricultural income has to be clubbed with other income(salary, income from houseproperty, income from business etc.,) and tax has to be calculated on the aggregated income. This is step one.
Now the net agricultural income is to be enhanced by the first slab ( i.e. the income which is not taxable) and on the aggregated amount tax has to be calculated.
This is step two.
Now Deduct tax arrived at step two from the tax arrived at step one. The balance tax is the income-tax payable for the assessment year. The said tax has to be enhanced by surcharge and educational cess as per the prevailing rules.
Hope you have got clarification.
Best Wishes
Sathikonda
Anumanchipalli Sathikonda
(Tax Consultant)
(1349 Points)
Replied 21 January 2010
Ms.Fatema
Please go through the Finance Act.
Best Wishes
Sathikonda
Anumanchipalli Sathikonda
(Tax Consultant)
(1349 Points)
Replied 21 January 2010
Mr.Govinda Reddy
and
Ms.Fatema
To make the matter explicit I am herewith attaching a word document which contains the relevant portion of Finance (No.2) Act, 2009.
Best Wishes
Sathikonda
C.Balaji
(Learner)
(1867 Points)
Replied 22 January 2010
Surprised with the answer of Fatema who always gives pucca answer....
Integration method is applicable....
agree with Sathikonda anumanchipalli....
CA Amit Kumar
(C.A., CWA Final)
(251 Points)
Replied 22 January 2010
Dear Govinda u can calculate the tax amount as follows:
Step-1- Calculate tax on total income including Ag Income.
Step-2-Calculate tax on Ag. Income by adding Ag income in Slab, i.e. 16000+Ag income
Step-3- Calculate The amount of tax on income by deducting the amount calculated in step 2 from step1
Step-4- Resulting figure will be tax on total income.
RADHIKA JALAN
(agarwal)
(1521 Points)
Replied 22 January 2010
sathikonda sir is correct.............
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