Agricultural income taxability

Yes, Agricultural Income is totally exempt, but it is icluded in taxable income for rate purpose.

that means the tax rate in the above example would be 30% and not 20% right?

in a.y. 2013-14

tax on total income=10lac+10lac =452000 tax

tax on agriculture income=10lac+180000=206000

total tax =452000-206000=246000

whole agricultur income is tax free but it's effect in tax

calculation -

1. calculate tax on total income including A.I.

2. calculate tax only on Agricutural Income.

3. Tax = (1 - 2 ) 

what will be the proof for this agricultural income.