09 May 2014
I AM AN INDIVIDUAL HAVING A INCOME OF 500000 & ALSO HAVING AGRI INCOME OF 300000 IS SEC 87A EXEMPTION 2000 RS IS AVAILABLE ? WHAT IS THE TAX TREATMENT OF AGRI INCOME
10 May 2014
Exemption of Rs. 2000 is available only if the total taxable income is not exceeding Rs. 500,000/-. Since in your case the taxable income is Rs. 800,000 (500,000+ 300,000), exemption is not available. Agricultural income will be added in Rs. 500,000 for determining the slab rate and then the tax on agricultural income shall be deducted from above to determine net tax liability.
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