Computation in case of agri income

Tax queries 13040 views 10 replies

hii all

i have a query regarding agriculture income

assume that a person is having the following incomes
agirculture income 12 lakhs
business income    03 lakhs

80C deduction available to hime 1 Lakh

assuming the latest slab rate
how should the tax be computed in this case ?
kindly explain teh entire steps to be followed

thanks !

Replies (10)

1. Add agricultural income and business income 

2. Calculate tax on above with slab rates

3. Add agriculture income + Rs. 200000/- (being basic exemption limit)

4. Calculate tax on above with slab rates

5. Difference of 2 and 4 = Net tax payable

 

1. Add agricultural income and business income

2. Calculate tax on above with slab rates

3. Add agriculture income + Rs. 200000/- (being basic exemption limit)

4. Calculate tax on above with slab rates

5. Difference of 2 and 4 = Net tax payable

 

thats absolutely right...........................................

well explained prateek ji.................

First Compute tax on Agr Inc & Non-Agr inc whihc comes as follows:

(1500000-100000)= 1400000

(1400000-800000)*.3= 180000

Tax payable= 180000*1.03= 185400

Second Add exemption limit to agr inc & compute tax on that

1200000+180000= 1380000= 1280000

(1280000-800000)*.3= 144000*1.03= 148320

Deduct tax at step 2 from Step1.  balance wud be your tax payable + Cess @ 3%.

why have u deducted 8 lakh ??
i mean only the 30 percent slab is being used what abt 10 and 20

??



thanks :)

Dear friend,

Following Step Followed to calculate Tax on Agriculture income.

Step-1 - calculate tax on total income including agriculture income.

               Business Income          3,00,000

              Agriculture Income        12,00,000

                    Total Income             15,00,000

    Less:- Deduction U/s 80 C       1,00,000

                 Taxable income           14,00,000

              Tax on above income     2,80,160

 

Step-2 Calculate tax on agriculture income

             Agriculture Income        12,00,000

             Basic Exemption             1,80,000

              Total Income                  13,80,000

         Tax on above income         2,73,980

Step-3  Difference of Step 1 and Step 2 is exempt from tax.

               2,80,160 -  2,73,980=6,180

 

Step-4

Net tax payable     =    2,80,160  -  6,180  = 2 ,73,980

 

Correctly pointed out by Raman...

u mean a person who only earns a mere 3 lakh from business has to pay 273980 for earning this extra amount if he is having agriculture income as well
isnt that unjust !
i mean if u weer only earning agriculture incoem evrything is exempt isnt it ?


thanks
 

hey guys please help

lady having 

income from house property=180000 - municipal tax10224

income from profession =180000

agriculture income =290500

IFOS= 4218+31848.23

housing loan of 1000000 was taken repayment detail is principal amount 119527

interest=188163

please help me to make computation how to calculate the income and what will be the deduction.

Raman Kumar :-  in the above example, Net Tax Payable is Rs 6180, not Rs.273980.

Because Net tax payable is "Difference of Step 1 and Step 2"  on above solution provided by Raman Kumar.....

 

Integration is not applicable in cases where incomes are taxed at special rates or in cases of companies or firms where income is taxed at flat rate.


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