Agriculture Income is exempt under section 10 . And it must satisfy 3 basic conditions

1. rent or revenue derived from land .

2. Such land is one which is situated in India

3. Such land is used for agricultural Income.

Nature                                                                             AgriculturalIncome

Tea manufacture                                                                  60 %

Growing Rubber & manufacture                                        65 %

Sale of cofee grown & manufactured                                75 %

Tax calculation when The assessee income exceeds basic exemption limit and the agricultural Income exceeds Rs5000

1. First calculate the tax on Both non agricultural and agricultural Income
2. Then caculate the tax on Net agricultural Income + basic exemption limit
3. Step (1) - Step (2)
4. Add  3% cess

                                                      Renu singh ,Can you Explain the Coniditions must satisfy at the time of exampt agricutural income.                             

Residential 

Basic conditions :-

1. he must be lived in india for previous year for 182  days or more

2. He have lived for a period of 60 days or more  during previous year & 365 days or more during 4 years immediately preceeding previous year .

Additional conditions :-

1.The person have lived 2 out of 10 years

 2. the person have lived 730 days or more during the 7 immediately preceding the relevant previous year.

For becoming the resident member he must follow atleast 1of the basic and both of additional

And for NRO   Just one basic  condition

Originally posted by : *RENU SINGH *
	Agriculture Income is exempt under section 10 . And it must satisfy 3 basic conditions rent or revenue derived from land . Such land is one which is situated in India Such land is used for agricultural Income.

  @ Shaym

thanks for asking question and ur participation

these are the basic conditions.  And agricultural Income is divided into basic and subsequent operations. BAsic  operations include Tiling of  Land , sowing of seeds , Planting or such. 

whereas subsequent operations include weeding, Digging the soil around the growth , nursing , planting and cutting etc.

Basic operations are included in agricultural Income whereas the subsequent operations get involved in profit and gains of business or proffession.
 

Originally posted by : *RENU SINGH *
	Agriculture Income is exempt under section 10 . And it must satisfy 3 basic conditions rent or revenue derived from land . Such land is one which is situated in India Such land is used for agricultural Income.

  @ Shaym

thanks for asking question and ur participation

these are the basic conditions.  And agricultural Income is divided into basic and subsequent operations. BAsic  operations include Tiling of  Land , sowing of seeds , Planting or such. 

whereas subsequent operations include weeding, Digging the soil around the growth , nursing , planting and cutting etc.

Basic operations are included in agricultural Income whereas the subsequent operations get involved in profit and gains of business or proffession.
 

Capital and Revenue Receipts and expenditure

1. Capital receipts are of fixedcapital receipt whereas Revenue receipts are of circulating capital receipts .

2. Receipts lies in source of Income is capital whereas receipt in lieu of Income is Revenue receipt.

3. Capital expenditure improves in earning capacity and its benefit is spread over serveral years whereas revenue expenditure improves in profit making capacity and its benefit is utilised within a year.

acquisition of fixed assets  is capital expenditure but routine expenditure is receipt expediture.

Tomorrow we will start with Salary. If anyone has any kind of suggestions or comments , plz share

Capital Reciets or Expenses are always one time whose benefits are derived in the years to come.

Whereas, Revenue Reciepts or Expenses help the business to work in day-to-day environment.

SEC 80C: DEDUCTION IN RESPECT OF LIFE INSURANCE PREMIUM, CONTRIBUTION TO PPF, PRINCIPAL REPAYMENT ON HOME LOAN, ETC.

You are entitled to a tax benefit provided you make investments in certain instruments which are eligible for deduction under Sec 80C of the Income Tax Act, 1961, with the maximum total exemption being Rs. 1, 00,000. That is, if your income is 5,00,000 you can claim tax exemption up to 1,00,000 which leaves you with a taxable income of 4,00,000.

Following are a few options that permit this exemption:

SEC 80CCF: DEDUCTION IN RESPECT OF SUBSCRIPTION TO LONG TERM INFRASTRUCTURE BONDS