Agriculture income is not exempt
Guest
I WANT TO ASK YOU ABOUT CALCULATION OF AGRICULTURE TAX.
HARE IS AN EXAMPLE PLZ TOLD ME THAT THIS CALCULATION IS RIGHT OR WRONG.
An assesse has his total income of Rs.220000 and agricultural income is Rs.300000.We know tax rate upto 500000 is 10% and upto 800000 is 20%. Now total income for tax purpose is Total income + agricultural income = 220000+300000 = 520000.
Now compute tax on it according to the above tax rates. is Rs.34000.Now computation of agricultural income tax exemption. It would be computed on(basic exemption limit + agricultural income) = 200000 + 300000 = 500000.
. Now compute tax on it according to the above tax rates is Rs.30000
Now deduct the agricultural income tax exemption from the income tax on total computed = actual tax - agricultural tax exemption = 34000 - 30000 = 4000
4000*10.3/100=412
4000+412=4412
MY QUERY STARTED NOW.
WHAT WILL MY TOTAL TAX LIABLITY . SHOULD IT 4412 OR 2060(20000*10.3/100=2060)
in my opinion agriculture income is not tax free income . plz explain
because for the higher income people
it increases the slab rate for a person from 10% to 20% or 30%
Guest
Guest
ONCE TOTAL INCOME EXCEEDS 10% EXEMPTION LIMIT, THEN AGRICULTURE INCOME WILL BE TAXED PARTIALLY.
it is Rs.4120
and Rs.2060
the difference is the change in slab which results in some portion of agricultural income getting taxed.
Guest
or 4120
Guest
and education cess on the same is 3%
i.e 4000*3% = Rs.120
Therefore Total = Rs.4120/-
my mistake it shall be 3%
tax including agricultural income - Rs 34000
less - exemption - 30000
Tax payable Rs 4000
add cess at 3% = Rs 120
total tax liability Rs 4120
Guest
Guest
Guest
if your Agriculture income is less than Rs.5000/- you dont need to this cal.,
Guest
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