If agriculture income exceeds Rs.5000 and total income is above basic exemption limit than in following manner tax liability should determined: first calculate tax on total income including agriculture income as per normal slab. then calculate tax on agriculture income plus basic exemption limit. this is to be deducted fron above step. after deducting it amount remaining will be increased with surcharge and cess, interest and amy penalty.
By default, agricultural income is exempted from taxation and not included under total income. The Central Government can't impose or levy tax on agricultural income. The exemption clause is mentioned under Section 10 (1) of the Income Tax Act of India.
By default agriculture Income is exempted, if you have agriculture Income and business income both then it taxable after rebate.provided your agricultural income is exceeding 5000.
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