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Taxation of Agri. income

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ram niwas aggarwal (Querist)
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26 September 2009 Agriculture income is added in Total Income for Tax Rate purpose. If an assessee having agriculture income is lible to pay tax after addition of agri. income. Will edu. cess be added on excess tax payable by him due to change in tax rate. In addition, if his Total income exceeds Rs. 10 Lakh after addition of agri. income. Will he lible to pay surcharge on his income. Please solve this problem and give relevant case law.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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27 September 2009 1. Agriculture Income is added for "rate purpose" only when assessee's taxable income exceeds the maximum amount on which tax is not leviable. In other words if taxable income is below 150000/-(for AY 2009-10,Male <65) Agriculture income is not required to be added.
2. If assessee is having taxable income more than 150000/- Agri. Income is required to be added for rate purpose.
3. Sur-charge is leviable only when taxable income (only) exceeds Rs 10.00lac.
By addition of Agri. Income if Income for rate purpose exceeds 10.00 lac then no sur-charge is leviable.

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