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Agriculture income

Saku Goyal (1 Points)

08 January 2021

if we have agriculture income then what is the taxability??

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5 Replies

Abrar Ali (15 Points)
Replied 09 January 2021

Exempt

Smit Shah (524 Points)
Replied 09 January 2021

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.

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Krishna Chaudhary (Accountant) (4531 Points)
Replied 09 January 2021

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.

Kapadia Pravin (17249 Points)
Replied 09 January 2021

The agri income is exempt but added to Total income for determining tax rate purposes.

Agri income above 5000/- require land details and other details as to crop yield etc.

Krishna Chaudhary (Accountant) (4531 Points)
Replied 09 January 2021

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.