Agriculture income

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 September 2012 Suppose Assessee has business income (120000), other source income (200000) and agricultural income (270000), will the agricultural income be fully exempt?

CA. Subhash Dangi

CA. Subhash Dangi (Expert)
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26 September 2012 Agriculture income is fully exempt. However, the agriculture income will be clubbed with other taxable incomes for rate purpose only.

Querist : Anonymous

Querist : Anonymous (Querist)

26 September 2012 can you clarify your statement with suitable example that how it ll affect slab rates

CA. Subhash Dangi

CA. Subhash Dangi (Expert)
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26 September 2012 If assessee is an Individual and AY 2012-13:

Income from Business : 120000
Income from Other Sources: 200000
Taxable income : 320000
Add: Agriculture Income : 270000
Total Aggregate Income : 590000
Tax on Aggregate Income:
Up to Rs. 180000 : Nil
180000 - 500000= 10% : 32000
500000 - 100000= 20% : 18000
(90000x20%)
Total tax payable : 50000
Less: Rebate on Agric inc : 27000
((180000+270000=450000)
Net tax payable : 23000
Add EC & SHEC @ 3% : 690
Total Tax liability : 23690

The difference in tax computation is:
Tax on taxable income Rs. 320000 = 14420
Tax on Aggregate income claiming
rebate on agriculture income = 23690

Net out flow on rate purpose = 9270

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