Go AD-Free with CAclubindia Pro and Daily Mobile Updates. Subscribe Now!

Tax calculation ay 2020-21

Ashish Bansal (75 Points)

24 September 2020

business income 490000 and agricultural income 370000,showing tax 34000,how it is possible

Reply
Follow
Share

5 Replies

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 24 September 2020

Yes, it's all right..
because agriculture Income is not fully Exempt as you think, It's Exempt but if you have a agriculture income as well as non agriculture income, than its going to be partial Taxable as per prescribed method of calculation of tax in case of agriculture plus non agriculture Income.

Ashish Bansal (75 Points)
Replied 24 September 2020

Which section read with above complete calculation solution

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 24 September 2020

1. Tax on (Agriculture + Non Agriculture income)
2. Tax on (Agriculture + Basic Exemption limit)
3. Tax Payable = Tax 1 - Tax 2
4. Less : rebate of Rs. 12,500/- if your Non agriculture income below 5,00,000
5. Add : 4% Cess
6. It's total tax payable.

in your case,
1. Tax on (4,90,000+3,70,000)= 84500
2. Tax on (3,70,000+2,50,000)= 36,500
3. 84500-36500= 48000
4. less : rebate 12,500 so, comes 35,500
5. Add 4% cess (4% of 35500=1420)
6. total payable 36920

1 Like