Tax in case of agri income

This query is : Resolved

Rishabh Ahuja (Querist)
Follow

29 May 2012 hii all

i have a query regarding agriculture income

assume that a person is having the following incomes
agirculture income 12 lakhs
business income 03 lakhs

80C deduction available to hime 1 Lakh

assuming the latest slab rate
how should the tax be computed in this case ?
kindly explain teh entire steps to be followed

thanks !

gbalakrishnan

gbalakrishnan (Expert)
Follow

30 May 2012 agriculture income not taxable but your other income.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

30 May 2012 For FY 11-12

1. Calculate tax on total income including agricultural income, i.e., Rs. 14,00,000 = Rs. 2,72,000

2. Calculate tax on (Agricultural Income + Basic Exemption Limit), i.e. Rs. 13,80,000 (12,00,000+1,80,000) = Rs. 2,66,000

3. Tax Payable = (1) - (2) = Rs. 6,000
Add: Cess @ 3% = 180
Tax Payable = Rs. 6,180

Message likes : 1 times