Income tax
This query is : Resolved
03 February 2018
Dear Sir,
My friend has only agriculture income of Rs. 456000/-as his principal source of income for earning livelihood . Whether it is business income.
and PROFIT AND LOSS A/c require to prepare.
My friend has only agriculture income of Rs. 456000/-as his principal source of income for earning livelihood . Whether it is business income.
and PROFIT AND LOSS A/c require to prepare.
03 February 2018
Roni, if your friend only has agriculture income then he need not file any return. But if he has other income exceeding Rs. 2.5 lacs pa then he needs to file return
03 February 2018
Agricultural income is exempt clause is mentioned under Section 10 (1) File ITR-2 since your agriculture income above Rs.5000/-
03 February 2018
Computation of Income Tax liability on Agricultural income is done, if following two conditions are cumulatively satisfied.
- Net Agricultural income exceeds Rs. 5,000/- for previous year, and
- Total income, excluding net Agricultural income, exceeds the basic exemption limit.
Once the aforementioned conditions are satisfied then we shall compute the Tax liability.
As per the facts mentioned by you, these two conditions are not satisfied therefore, your income is exempt from tax.
- Net Agricultural income exceeds Rs. 5,000/- for previous year, and
- Total income, excluding net Agricultural income, exceeds the basic exemption limit.
Once the aforementioned conditions are satisfied then we shall compute the Tax liability.
As per the facts mentioned by you, these two conditions are not satisfied therefore, your income is exempt from tax.
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