salary income with agri income

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CA Suresh Paghdar (Querist)
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14 March 2008 A salaried employee having Gross salary 132000/-, but after deducting allowance u/s 10 and investment u/s 80 taxable salary remain only 98000/- but also having agri income of Rs.100000. In such a case how to compute taxable income ?

pushpendra

pushpendra (Expert)
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14 March 2008
For the Assessment Yr. 2007-08
Computation of Total Income

Income from Salary (Chapter IV A) 122000

Salary 122000
Conveyance U/s 10(14) 10000
-----------
132000
Less:
Conveyance U/s 10(!4) 10000 ----------------
10000 ---------

Gross Total Income 122000

Less: Deductions (Chapter VI-A)
u/s 80C
L.I.P. 24000
24000
--------
Total Income 98000
Agriculture Income 50000
Income Exempt u/s 10 10000

Gross Tax Payable 4800
Rebate Agriculture Income 4800
Tax Due 0
Tax Payable 0

R.V.RAO

R.V.RAO (Expert)
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14 March 2008 MR. PUSHPANDRA'S CALCULATION AND THE TROUBLE HE TOOK IS WORTHY OF A COMPLIMENT.
I WISH TO ADD A FEW MODIFICATIONS.
UNDER SEC. 10 CONVEYANCE I BELIEVE IT IS RS. 800X12= RS. 9600.
AGR. INCOME IS ONLY ADDED FOR TAX SLAB PURPOSE.SO IF WE ADD RS. 100000 AS STATED IN THE QUERY, THE APPLICABLE SLAB TO TOTAL INCOME WILL GO UP. THOUGH WE DONT ADD AGR. INCOME AS TAXABLE, THE AGR. INCOME SIMPLY PUSHES UP SLAB OF THE SALRY INCOME AS IT IS ADDED FOR SLAB PURPOSE.
AFTER APPLYING THE SLAB AND COMPUTE TAX ON TOTAL INCOME, WE DEDUCT TAX APPLICABLE TO AGR. INCOME OF RS. ONE LAKH. THE NET TAX PAYABLE IS BALANCING FIGURE.
TO THAT EXTENT , THE CALCULATION OF TAX WILL UNDERGO CHANGE.
R.V.RAO

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