Aggregation of Agricultural Income

Whether Long term capital gain is to be deducted from non-agri income while determinig application of aggregation of agricultural income or not?

For eg:

The income of Senior Citizen is as follows:

LTCG on sale of house: 200000

STCG on sale of shares in B Pvt Ltd: 30000

Prize Winnings from a TV Show: 20000

Business Income: 220000

Net Agricultural Income: 40000

He paid-LIC premium of self: 40000,  LIC premium of husband-20000

He also paid-Premium for annuity contract with LIC in name of her husband: 25000

                  Compute Tax payable.

Note:If we deduct LTCG to determine Non- agri income, the income will be below exemption limit and no aggregation of agri income.

          If we do not deduct LTCG to determine Non- agri income, the income will be above exemption limit and aggregation of agri income applies.

                        

Replies (5)

THE GROSS TOTAL INCOME INCLUDING agriculture income is coming out to be Rs. 510000/- and after 80C deduction, it is Rs. 425000/-. Now out of it, Rs. 200000 is LTCG, Rs. 30000 is STCG, Rs. 20000 is Winnings, the slab rate income is left as Rs. 175000/-.

 

Now, we will reduce amt. of LTCG to add it up to Rs. 175000 to make it Rs. 240000 by reducing LTCG by Rs. 65000/-.

 

Hence we left with LTCG of Rs. 135000/-, Rs. 30000 is STCG, Rs. 20000 is Winnings. TAX on it will be [ 27000+4500+6000] = 37500/-

Now accordingly u can do aggregation of income.!!!

Please rectify my above answer. as u hve rightly pointed out, the shares are not of RSE, the same shall be added to the slab rate income and deduction of annuity paid for husband would not be available to the assessee....!!

Originally posted by : Parshu
Whether Long term capital gain is to be deducted from non-agri income while determinig application of aggregation of agricultural income or not?
For eg:
The income of Senior Citizen is as follows:
LTCG on sale of house: 200000
STCG on sale of shares in B Pvt Ltd: 30000
Prize Winnings from a TV Show: 20000
Business Income: 220000
Net Agricultural Income: 40000
He paid-LIC premium of self: 40000,  LIC premium of husband-20000
He also paid-Premium for annuity contract with LIC in name of her husband: 25000
                  Compute Tax payable.
Note:If we deduct LTCG to determine Non- agri income, the income will be below exemption limit and no aggregation of agri income.
          If we do not deduct LTCG to determine Non- agri income, the income will be above exemption limit and aggregation of agri income applies.
                        

net taxable income including agriculture income  will be 450000(80 C deduction of 60000 given)...

give basic exemption of 240000.....you are left with 210000...which includes 20000 lottery income nd 190000 long term cg......

 

tax will be...6000+38000=44000

deduct agriculture income tax 4000...

 

net tax is 40000 + 2% e.c nd 1 % SHEC....=41200

:)

Ya you are right,but i have checked in Winman software and Relyon,they have excluded Long term capital gain for determining aggregation of agri income.Hence the tax is coming (150000*20%+20000*30%)=36000

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