This discussion explains how agricultural income can lead to a tax rebate, effectively reducing the total tax payable. The example shows that declaring agricultural income of Rs. 3.50 lakhs resulted in a rebate of Rs. 2,500, lowering the final tax due. This rebate is applicable when the agricultural income exceeds the maximum amount not chargeable to tax.
01 August 2025
Tax payable on total income 2 a Tax at normal rates on 15 of Part B-TI 2a 11,306 b Tax at special rates (total of col.(ii) of Schedule-SI) 2b 349 c Rebate on agricultural income [applicable if (12-13) of Part B-TI exceeds maximum amount not chargeable to tax] 2c 2,500 d Tax Payable on Total Income (2a + 2b -2c) 2d 9,155