27 July 2013
The salaried income is 6,75 lakhs p.a.[Net salary income after all deductions]. In addition to there is an agricultural income of Rs.25000 p.a.
Is this Agri income totally exempt from tax?.
Agri income is taken for rate purposes and ITR 2 is filed.
27 July 2013
Agriculture income is exempted from tax. But the department has taken back door to tax such income by adding ag income to total income and giving relief of tax.
As long as your income slab remains same (after adding ag income), there is no additional tax liability due to ag income.
If your income slab changes say 10% to 20% or 20% to 30% and so on, your tax liability is increased due to ag income
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