Rebate on Agri. Income

1.first of all find out the tax liability of the aggregate income (net taxable income+agri. income).

2.next find the taxl iability on (agricultural income+basic exemption limit) itself.

3.deduct 2 from 1.

and 3 is the actual taxliability

thatmeans 2 is the rebate on agricultural income

First calculate Income tax including Agri income (2242571+122343 = 2364914) whcih wil be 746051/- (a)

Then calculate Income tax excl Agri Income i.e. on Rs 2242571 which will come to 704467/- (b)

Rebate will be (a) - (b)

746051-704467 = 41584

Hope this help you.

Thanx Pradeep Sir. But in Computation teh rebate mentioned as 20468. The assesse is Proprietorship & in construction business. Please reply

Answer of Mr. Trinath is right.Rebate is the tax on agricultural income + exemption limit i.e. on Rs. 232343(122343+110000). Which comes Rs. 20468.

Mr. Afreen Khan can u explian by calculations. please

upto 110000 tax is NIL

on next 40000 @ 10%   4000

and on next Rs. 82343  @ 20% 14648

Total tax rebate is Rs.20468(4000+14648)

Thanx Mr. Afreen Khan.

Thanks Afreen