Help on agricultral income return preparation

Tax planning 504 views 1 replies

What point to be considered while preparation of agricultural income return.

Replies (1)

there is nothing special to be considered while filling an ITR for agricultural income except the calculation of tax in case if assesse has earned some non-agricultural income also in the said F.Y.

In that case Follow these steps to calculate tax

1. Calculate Gross Total Income Including Agricultural Income

2. Calculate Tax on above assuming that agricultural income is also taxable.

3. Calculate Tax on Just Agricultural Income + Basic Exemption limit available under the act.

4. Deduct the amount calculated as per step 3 from Amount derived from step 2. This amount will be the tax payable. Add cess and interest if any to the tax, to get total tax liability.


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