Agriculture

This query is : Resolved

parth shah (Querist)
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04 April 2013 Suppose an individual having an income of rs ten lakhs only from agriculture.....he does not have any other source of income.....will he liable to pay anu tax?

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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04 April 2013 He need not to pay any tax because of agricultural income is exempted income. And this income shall be added to your another taxable income for the purpose of tax rate and computation of tax and later it will get the relife of tax due to agricultural income. So in your case there is no taxable income so total tax shall be get as relife so tax liability.

For example: Assume Mr.A has taxable income of Rs.210000 and agricultural income is Rs.10,00,000 for A.Y 2013-14 and his income tax liability is as follows

Tax on Rs 12,10,000(including Agricultural income) is Rs. 2,13,000

Less: Agricultural rebate is Rs.2,10,000

Balance tax payable Rs. 3,000

Add: education cess Rs. 90

Total Tax payable Rs. 3,090

Note: Computation of agricultural rebate is Tax liability on (Basic exemption limit + Agricultural income).

Thus in your case total taxable income is 0(ZERO) agricutlural income is Rs.10,00,000

Tax liability is Rs. 150000
Less: Agricultural rebade is Rs.210000
Tota tax payment libility is Rs.(60000) since the figure is negative your tax payment liability is ZERO.

The above example computation made according to the A.Y 2013-14 applicable tax rates.

In one word those who has the taxable income below basic exemption limit(excluding agricutlural income) then no tax liability on agricultural income. And those who have taxable income exceeds basic exemption limit as well as has agricultural income then due to the agricultural income his tax payament liability may increase then normal payment of tax because of eventhough agricutural income is exempted income it shall be added to total income for the tax computation purpose.

So for your case you didn't have any taxable income except agricultural income so no tax liability on you.

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