08 April 2012
my client is having salary income of rs. 320000 and agricultural income of rs. 200000 by sale of wheat and cotton. do need to apply partial clubbing of agricultural income to find out tax liability?
09 April 2012
You have to add both the income i.e Income from Salary and agricultural income. In this case your salary income is 3,20,000 and Your agricultural income is 2,00,00. Hence your total income is 5,20,00/- You have to calculate what is tax on 5,20,00 say X From this you have to deduct tax on Agriculture Income + basic exemption which is Rs. 2,00,000 in the current budget. Hence tax on 4,00,000 shall be reduced from X and net tax shall be payable on which 3% surcharge or ED to be added