INCOME TAX PROBLEMMM

HE CAN CLAIM DEDUCTION FOR LIC PAID UNDER 80C

& IF AGRICULTURE INCOME EXCEEDS 5000

AND NON AGRICULTURE EXCEED BASIC EXEMPTION LIMIT i.e 160000

THAN INDIRECT WAY OF TAXING AGRICULTURE INCOME U/S 10(1) IS APPLIED

AND FOR MORE INFO.

U CAN REFER SECTION 10(1)

& CALCULATE TAXABLE INCOME

HI DEAR,

INCOME FROM SALARY IS TAXABLE ON DUE BASIS AND NOT ON THE RECEIPT BASIS. THUS U'R SALARY WOULD BE TAXABLE IN YEAR OF IT'S DUE. SECONDLY U WILL GET THE BENEFIT OF LIC PAID U/S 80C.

EVEN IF THE AGRICULTURAL INCOME EXEMPT U/S 10(1), INCOME TAX ACT PROVIDES INDIRECT WAY OF TAXATION OF SUCH INCOME. COMPUTATION METHODOLOGY IS GIVEN UNDER SEC 10(1)

REGARDS,

MANOJ

I fully agree with manoj

Salary is taxable on receipt or due basis whichever is earlier. So u have to make the income taxable during the current. As we all have an implied thinking that agriculture income is exempt from tax it is not so. Income tax levies tax on that income through an indirect way and it is also taxable. so lic paid will be allowed as deduction U/s. 80-C

Hi,

The deduction under section 80c can be availed even though the payment is made out of income which is exempt from tax. So, in this case, the payment for LIC made out of Agricultural income can be availed as deduction. Refer S.80c for further clarity 

I have made investments in ulip for regular 3 years & claimed the rebate on invested amount, now i want to withdraw from it. I want to know that whether the rebate claimed earlier will be taxable now. Is there any provision in Income Tax Act regarding that, if yes, from which year it came into force (if possible please mention the date & section also also).

agree with all......

Salary is taxable on receipt or due basis.  Deduction u/s 80c is allowed as the said section doesnot mention that amount must be  paid out of income chargeable to tax. In respect of tax calculation so far i know it will remain normal i.e no section 10(1) will get applicable as the total income is less than Rs. 160,000.00

Dear Vipin Kumar,

Withdrawal from ulip before 5 years is taxable u/s 80c(5) in previous year in which it is withdrawan if the amount was claimed as deduction earlier u/s 80c. In your case u have claimed deduction and hence so much of the amount claim as deduction earlier is taxable.

salary is taxable in due or receipt basis which ever is earlier

net taxable income( incl. agri. income)  - 655000

tax payable - 100500

agri. income+ basic limit  -650000

tax payable -                        99000

net  tax payable - 1500+ ec+shec

salary is taxable in due or receipt basis which ever is earlier

net taxable income( incl. agri. income)  - 655000

tax payable - 100500

agri. income+ basic limit  -650000

tax payable -                        99000

net  tax payable - 1500+ ec+shec

salary is taxable in due or receipt basis which ever is earlier

net taxable income( incl. agri. income)  - 655000

tax payable - 100500

agri. income+ basic limit  -650000

tax payable -                        99000

net  tax payable - 1500+ ec+shec

I agree.................