Dear Friends,
What is the treatment of income from agriculture for Individuals having business income also?
murugan
(accounts)
(25 Points)
Replied 09 August 2010
the agricultural income have add your total income. then compute tax on the both amount.
then you calculate tax for agricultural income, it willl be deductable from total tax amount.
eg:
business income 200000
Agricultural income is 50000
Taxable income 250000
Tax 10% of (250000-160000) 9000
less: Tax on Agri income
10% of 50000 5000
Tax payable 4000
| Originally posted by : murugan | ||
 |
the agricultural income have add your total income. then compute tax on the both amount. then you calculate tax for agricultural income, it willl be deductable from total tax amount. eg: business income 200000 Agricultural income is 50000 Taxable income 250000 Tax 10% of (250000-160000) 9000 less: Tax on Agri income 10% of 50000 5000 Tax payable 4000 |
 |
adisri
(Final )
(610 Points)
Replied 09 August 2010
Agricultural Income alone is exepmt from tax it is taxable only if 2 conditions are satisfied.
1. If the Tax payer is having any Non- Agricultural income and if it exceeds the minimum taxable limit for that Asst.Year and,
2. If the Agricultural Income exceeds Rs.5000\-
the the calculation is as fallows:-
a)Gross Income = ( Taxable income + Agricultual ) and calculate tax on Gross income according to the applicable rates for that asst.year ; then
b)Agricultural Income Exemption: - Add agricultual income to the Minimum Taxable limit and calculate tax ther on according to the rates prescribed.
then a-b is the net tax payable
you can analyse the formula with the example given by Mr. Murugan
Amar Kumar
(CA Final , Intern )
(1095 Points)
Replied 10 August 2010
In a question ,
A man had received a share a crop from leased agricultural land. A part of crops received - he consumed.
And the rest he sold for Rs.30000.He then deposited this 30000 in PPF.
What will be the treatment here???Is 30000 agricultural income?
Sanjay Singh Rana
(CA)
(208 Points)
Replied 10 August 2010
| Originally posted by : Amar Sharma | ||
|
|
In a question , A man had received a share a crop from leased agricultural land. A part of crops received - he consumed. And the rest he sold for Rs.30000.He then deposited this 30000 in PPF. What will be the treatment here???Is 30000 agricultural income? |
|
hello Amar
yes Rs 30000 will be agricultural income in the hands of assessee and will be exempt from tax and no treatment will be done
Any rent received from land which is used for agricultural purpose: Assessees do not have to pay tax on rent or revenue from agricultural land. Such land should, of course, be assessed to land revenue in the country or be subject to a local rate. Further, there must be a direct link between the agricultural land and the receipt of income by way of rent or other revenue (for instance, a landlord could receive revenue from a tenant).
also
Any income derived from such land by agricultural operations including processing of agricultural produce, raised or received as rent in kind so as to render it fit for the market, or sale of such produce.
hope it will solve your query :)
take care
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