Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Agricultural income tax

Sitesh Agarwal (Business ) (43 Points)

13 March 2016

I have agricultural income of rs 1,00,000/-, business income of rs 240000/- and deduction under 80c 20000/- How will be the computation of tax

Reply
Follow
Share

2 Replies

yaseen (consultant) (94 Points)
Replied 13 March 2016

Indian Agri income is expempt from income tax. As ur total income income is (240000-20000) 220000 which below the slab of 250000/- so ur tax liability is nill..

Upgrade to CAclubindia Pro. Subscribe Now!

TheIneffable (Chartered Accountant MBA aspirant) (60 Points)
Replied 14 March 2016

Agricultural income is considered for the purpose of determining tax rate while computing the income tax liability, if following two conditions are cumulatively satisfied:

Net Agricultural income exceeds Rs. 5,000/- for previous year, and
Total income, excluding net Agricultural income, exceeds the basic exemption limit.

Now since the second condition is not met here (total income being less than the basic exemption limit of Rs. 250000) , the partial integration method is not applicable in your case and hence, the income is tax free.