Exemption limit of it for agricultural income
This query is : Open
14 October 2012
Sir,
What is the exemption limit of Agricultural income where an individual having salary + business + agricultural income. kindly show the computation
Salary Rs.250000/-
Business Income Rs.175000/-
Agriculture income Rs.175000/-
__________
Total Rs.600000/-
Regards
vinaykumar deshpande
What is the exemption limit of Agricultural income where an individual having salary + business + agricultural income. kindly show the computation
Salary Rs.250000/-
Business Income Rs.175000/-
Agriculture income Rs.175000/-
__________
Total Rs.600000/-
Regards
vinaykumar deshpande
14 October 2012
Any income arises from the Agricultural is exempted to income but first such income also added to our total income for the rate purpose and then we have to get the agricultural income tax exemption.Computation of tax who have agricultural income is as follows.
1) First compute tax payable by considering the income after adding of agricultural income i.e Rs.600000 in your case.
2) Now add the agricultural income to the basic exemption limit and then compute tax on it. I.e 200000(assumed basic exemption limit)+175000 = 375000
3) Now net tax payable = tax at step 1 - tax at step 2
4) Compute and add Education cess @3% on tax at step 3 is the total tax payable.
Now total tax payable computation to your case:
1) tax payable on Rs.600000 = 50000
2) tax on Basic exemption limit + agricultural income I.e on Rs. 375000 = 17500
3) Net tax payable step 1- step 2 = 50000 - 17500 = 32500.
4) Education cess @3% on step 3 = 975
5) Total tax payable is Rs.33475.
Due to the agricultural income your tax payable liability is increased by Rs.10300. Because of adding of agricultural income to your total income changes the tax slab rate.
Note: Income after adding of agricultural income to your total income is in 10% slab then we can say agricultural income fully exempted otherwise not.
If in your case assume agricultural income is Rs.75000 only then Income after adding of agricultural income is Rs 500000 lacs only i.e your income including agricultural income and excluding agricultural income both are in 10% slab then you will get full exemption of agricultural income.
So we called as agricultural income is taxable for the purpose of rate of tax.
OM SAI SRI SAI JAI JAI SAI
1) First compute tax payable by considering the income after adding of agricultural income i.e Rs.600000 in your case.
2) Now add the agricultural income to the basic exemption limit and then compute tax on it. I.e 200000(assumed basic exemption limit)+175000 = 375000
3) Now net tax payable = tax at step 1 - tax at step 2
4) Compute and add Education cess @3% on tax at step 3 is the total tax payable.
Now total tax payable computation to your case:
1) tax payable on Rs.600000 = 50000
2) tax on Basic exemption limit + agricultural income I.e on Rs. 375000 = 17500
3) Net tax payable step 1- step 2 = 50000 - 17500 = 32500.
4) Education cess @3% on step 3 = 975
5) Total tax payable is Rs.33475.
Due to the agricultural income your tax payable liability is increased by Rs.10300. Because of adding of agricultural income to your total income changes the tax slab rate.
Note: Income after adding of agricultural income to your total income is in 10% slab then we can say agricultural income fully exempted otherwise not.
If in your case assume agricultural income is Rs.75000 only then Income after adding of agricultural income is Rs 500000 lacs only i.e your income including agricultural income and excluding agricultural income both are in 10% slab then you will get full exemption of agricultural income.
So we called as agricultural income is taxable for the purpose of rate of tax.
OM SAI SRI SAI JAI JAI SAI
Message likes :
1 times
22 February 2013
In case if a farmer having income from only agriculture of any limit is fully exempted
? ? . Say, he has income from agriculture Rs. 25,00,000/- out of which i has invested 15,00,000/- in FD with some bank. whether this income also considered as derived basically from agriculture?
? ? . Say, he has income from agriculture Rs. 25,00,000/- out of which i has invested 15,00,000/- in FD with some bank. whether this income also considered as derived basically from agriculture?
22 February 2013
No, Interest income earned on deposit of FD is taxable irrespective of sources of deposit amount.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
05 December 2013
Sir,
what is section of above said relief?
ie. 10% of Basic Exemption limit+ Agricultural Income ?
what is section of above said relief?
ie. 10% of Basic Exemption limit+ Agricultural Income ?
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Refund Annexure-B
- Clarification regarding Import E-way bill transaction type // Regular or Bill from Dispatch From
- Sale of Equity shares for Purchase of Residential Property
- GST Reverse
- Liable to deduct tds and 44ADA
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- Non issue of e way bill
- RCM and FCM
- Two seprate Invoice needed
- Subscription paid to foreign customer
- GST Cancellation without jurisdiction
- ITC on purchase of commercial property( shop/Godown/offce etc.)
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
