Agricltural land

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 February 2012 a father died and his son has received 1/4 share in his father's property - this is an agricultural land.he will also receive income from the produce which is grown on this land. can u suggest me the effect in balance sheet and how to compute tax on it?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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24 February 2012 The Agriculture land can be shown at 1/4th of the total cost to his father by crediting the capital account of the assessee.
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For computation of Tax , Agriculture Income (if > Rs. 5000) is added to the total income for rate purpose only. So , in case total income is taxable, then only such addition is required.
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Tax on (Total Income+ Agriculture Income) is first calculated.
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From the above Tax on (Taxable Limit+Agriculture Income) is deducted.
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The net amount is Tax payable and we may proceed further by adding EC, HSEC etc.
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