Is agricultural income totaaly exempt from tax?
for eg is assessee has an income of 10 lakhs from other sources and 10 lakhs from agriculture then what will be his taxability?
What documents can be called upon by the department for proving the same? What records should assessee necessarily maintain?
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.
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