JEEVIKA AND CO (PROPRIETRIX) (153 Points)
13 December 2017DEAR SIR / MADAM,
A BUILDING CONTRACTOR'S INCOME RS. 48 LAKHS IN HIS BUSINESS INCOME AND HE HAVE AGRICUKTURE INCOME
RS. 3 LAKHS. I WILL SHOW THE PROFIT RS. 3.90 LAKSH (ABOVE 8%)... THE QUERIES ARE NOW.,
1. IS IT CORRECT METHOD OF CALCULATION R NOT...?
2. WHAT IS THE ACRI INCOME RS. 3 LAKHS? IT'S FULLY EXEMPTED OR NOT...?
3. HOW TO CALCULATE THE INCOME (8%0). ITS RS. 48 LAKHS * 8% = 384000 OR RS. 51 LAKHS * 8% = 408,000
PLEASE GIVE YOUR VALUABLE REPLY...
THANKS IN ADVANCE...
sudharshan reddy
(CA )
(42 Points)
Replied 13 December 2017
Presumptive taxation is applicable for taxable income only.
Hence, 8% we have calculate on 48 lacs but not on the 51 lacs
So 8% of 48 lacs is the total taxable income
Since, you have the agricultural income (fully exemppted) there is a separate tax computaion when we have such income
Refer below:
| Assessment Year : 2015-16 & 2016-17 | ||||||||||||||||
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| Normal Citizen Senior Citizen Super Senior Citizen | ||||||||||||||||
| A | Gross Total Income | 384,000 | ||||||||||||||
| B | Less: Deductions under Chapter VIA | - | ||||||||||||||
| C | Total Income | 384,000 | ||||||||||||||
| D | Add: Net Agricultural Income | 390,000 | ||||||||||||||
| E | Aggregated Total Income | 774,000 | ||||||||||||||
| F | Income Tax on E | 79,800 | ||||||||||||||
| G | Basic Exemption Slab Applicable | 250,000 | ||||||||||||||
| H | Net Agricultural Income + Basic Exemption Slab | 640,000 | ||||||||||||||
| I | Income Tax on H | 53,000 | ||||||||||||||
| J | Income Tax Payable (F-I) | 26,800 | ||||||||||||||
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Notice that effective income tax remains the same unless E and H falls under different income tax rate slabs
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