Rishabh Ahuja (.) (491 Points)
28 May 2012
hii all
i have a query regarding agriculture income
assume that a person is having the following incomes
agirculture income 12 lakhs
business income 03 lakhs
80C deduction available to hime 1 Lakh
assuming the latest slab rate
how should the tax be computed in this case ?
kindly explain teh entire steps to be followed
thanks !
Prateek Agarwal
(Sr. Executive - Finance & Accounts)
(1732 Points)
Replied 28 May 2012
1. Add agricultural income and business income
2. Calculate tax on above with slab rates
3. Add agriculture income + Rs. 200000/- (being basic exemption limit)
4. Calculate tax on above with slab rates
5. Difference of 2 and 4 = Net tax payable
ca nishajain
(ca)
(28 Points)
Replied 28 May 2012
1. Add agricultural income and business income
2. Calculate tax on above with slab rates
3. Add agriculture income + Rs. 200000/- (being basic exemption limit)
4. Calculate tax on above with slab rates
5. Difference of 2 and 4 = Net tax payable
thats absolutely right...........................................
well explained prateek ji.................
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 28 May 2012
First Compute tax on Agr Inc & Non-Agr inc whihc comes as follows:
(1500000-100000)= 1400000
(1400000-800000)*.3= 180000
Tax payable= 180000*1.03= 185400
Second Add exemption limit to agr inc & compute tax on that
1200000+180000= 1380000= 1280000
(1280000-800000)*.3= 144000*1.03= 148320
Deduct tax at step 2 from Step1. balance wud be your tax payable + Cess @ 3%.
Rishabh Ahuja
(.)
(491 Points)
Replied 28 May 2012
why have u deducted 8 lakh ??
i mean only the 30 percent slab is being used what abt 10 and 20
??
thanks :)
CA Raman Kumar
(job)
(132 Points)
Replied 29 May 2012
Dear friend,
Following Step Followed to calculate Tax on Agriculture income.
Step-1 - calculate tax on total income including agriculture income.
Business Income 3,00,000
Agriculture Income 12,00,000
Total Income 15,00,000
Less:- Deduction U/s 80 C 1,00,000
Taxable income 14,00,000
Tax on above income 2,80,160
Step-2 Calculate tax on agriculture income
Agriculture Income 12,00,000
Basic Exemption 1,80,000
Total Income 13,80,000
Tax on above income 2,73,980
Step-3 Difference of Step 1 and Step 2 is exempt from tax.
2,80,160 - 2,73,980=6,180
Step-4
Net tax payable = 2,80,160 - 6,180 = 2 ,73,980
Prateek Agarwal
(Sr. Executive - Finance & Accounts)
(1732 Points)
Replied 29 May 2012
Correctly pointed out by Raman...
Rishabh Ahuja
(.)
(491 Points)
Replied 29 May 2012
u mean a person who only earns a mere 3 lakh from business has to pay 273980 for earning this extra amount if he is having agriculture income as well
isnt that unjust !
i mean if u weer only earning agriculture incoem evrything is exempt isnt it ?
thanks
ravi chhangani
(article)
(23 Points)
Replied 15 June 2012
hey guys please help
lady having
income from house property=180000 - municipal tax10224
income from profession =180000
agriculture income =290500
IFOS= 4218+31848.23
housing loan of 1000000 was taken repayment detail is principal amount 119527
interest=188163
please help me to make computation how to calculate the income and what will be the deduction.
Sonam Sharma
(CA final Student)
(75 Points)
Replied 29 August 2012
Raman Kumar :- in the above example, Net Tax Payable is Rs 6180, not Rs.273980.
Because Net tax payable is "Difference of Step 1 and Step 2" on above solution provided by Raman Kumar.....
Swetha
(CA Student)
(22 Points)
Replied 19 July 2018
Integration is not applicable in cases where incomes are taxed at special rates or in cases of companies or firms where income is taxed at flat rate.
CAclubindia
