Can anyone explain below example?
am a salaried of total taxable income 450000/- (after all exemptions)
my Agriculture income is 310000/-
expenditure incurred 185000/-
net Agriculture income is 125000/-
I filed ITR2 and mentioned the above details in Schedule EI.
Now my Taxable Income become 635000/-
few saying Agriculture income is fully exempted, if so how?
for me it is showing due amounts in taxes payable column
how to exempt & which section.?
Agricultural income is exempt however for taxation purpose it'll be included and tax has to be paid after claiming rebate. in your case
the available rebate would be as per below calculation
1. tax on (your total income + net agricultural income) = 27500
2. tax on (basic exemption limit + net agricultural income) = 6250
the tax to be paid is 27500 - 6250 = 21250
CAclubindia
