26 September 2012
Suppose Assessee has business income (120000), other source income (200000) and agricultural income (270000), will the agricultural income be fully exempt?
26 September 2012
Agriculture income is fully exempt. However, the agriculture income will be clubbed with other taxable incomes for rate purpose only.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
26 September 2012
can you clarify your statement with suitable example that how it ll affect slab rates
26 September 2012
If assessee is an Individual and AY 2012-13:
Income from Business : 120000 Income from Other Sources: 200000 Taxable income : 320000 Add: Agriculture Income : 270000 Total Aggregate Income : 590000 Tax on Aggregate Income: Up to Rs. 180000 : Nil 180000 - 500000= 10% : 32000 500000 - 100000= 20% : 18000 (90000x20%) Total tax payable : 50000 Less: Rebate on Agric inc : 27000 ((180000+270000=450000) Net tax payable : 23000 Add EC & SHEC @ 3% : 690 Total Tax liability : 23690
The difference in tax computation is: Tax on taxable income Rs. 320000 = 14420 Tax on Aggregate income claiming rebate on agriculture income = 23690
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