dear sir m file itr 2. my agriculture income is 296411. and other income is 345230. so when we file return and clculate tax then taking rebate of 12500 after that also it show pay tax 7895 something. so is it posible bcoz agriculture is tac exempted.
solve my query?
Hi
Agricultural income is exempt from Income Tax under section 10(1) of the Income Tax Act, 1961. However, its included, for rate purposes, in computing the Income Tax Liability if following two conditions are cumulatively satisfied:
1. Net Agricultural income exceeds INR 5,000/- for P.Y. 2019-20, and
2. Total income, excluding net Agricultural income, exceeds INR 2,50,000/-.
Tax calculation will be
Tax on total Income including agricultural income =641641
Upto 250000---Nil
250000-500000----------12500
above----500000-------------28328
Total Tax ----------------40828
Tax on agricultural income including basic exemption limit
Total Agricultural Income -----296411
Add basic exemption limit------250000
Tax on above
upto 250000------NIL
250000-500000---------12500
above 500000-----------9282
total tax ====21782
tax payable ===40828-21782=19046
less Rebate U/S 87A=======12500
Balance Tax payable ========6546
Add edu cess===========263
Total Tax payable ========6809
CAclubindia
