agricultural income

DEAR ANAND,

1) NON TAXABILITY OF AGRICULTURE INCOME IS AVAILABLE TO ALL ASSESSEE'S

2) THERE IS NO LIMIT DEFINED..ENTIRE INCOME IS NON TAXABLE.

3) IT IS CONSIDERED FOR RATE PURPOSES ONLY I:E WHERE SLABS ARE DEFINED, SINCE UR CASE IS OF A COMPANY HENCE WILL NOT HAVE ANY AFFECT BECAUSE THE INCOME IS TAXABLE AT FLAT RATE WITHOUT ANY EXEMPTION LIMIT..

agree with Amir.We consider agricultural income in taxable income for the calculation of average rate of tax.Otherwise it is exempt in the hands of all the assessees.

Ag Income is comnsidered only for rate purpose. in ur case not applicable

Agricultural Income is not taxable under the central Income Tax Act, 1961. The power to tax agricultural income is resting with state legislatures, which is normally handled by VAT/Sales tax Dept. Your state would have an agricultural income taxes act, so see the provisions of the act and the rules made thereunder.

However, agricultural income can be aggregated with other heads of income for rate purposes in case of Individuals, HUFs, AOP/BOI if it exceeds Rs.5,000/- and if the total income from other heads exceeds the basic exemption limit (Rs.160,000/- or otherwise). Your case being a company, it wont be aggregated, and it should be entirely exempt U/s 10(1) of the Act.

Please note that Rule 7, 7A (Rubber), 7B (Coffee), and 8(Tea) of the central Income Tax Act have to be applied if the income derived is of a composite nature.

Please note that Avg rate of tax is defined somewhat as Tax computed as per income tax act divided by Total Income.

Since Agricultural income is exempt, it will not form a part of total income, and it will not be considered for computing ART.

Agricultural Income is exempt from tax......

Moreover Integration of agri income is  not done for companies,as they already pay tax at 30%....

it is considered for Individuals,HUF..

Yes. Balaji and Amir are correct.

Rgds