Agriculture Income Tax India ?

Question

I have income of Rs 9 lacs from salary for year 2007-08, I have saved Rs 1 lacs under 80C. My company has deducted Income tax on salary. I have agriculture income of Rs 1 lac .How much extra tax i should pay? Can somebody give me detailed calculation

Answer 1

Agricultural income from land in India is exempt from income tax under section 10(1). On you tax return, you will report this income with a note (exempted under 10(1)).

You must file your tax return. Read more

http://mytaxes.in/index.php?topic=32.0

Answer 2

There is a special treatment on tax on agriculture income. Though it seem to be exempt, It is Actually NOT for those who have non agriculture income.

Under Income tax provision the agriculture and non agriculture income will be clubbed and tax would be worked out after providing relief.

The following is the computation method

Step 1: Add agriculture income and non agriculture income and calculate tax as if the aggregate income is taxable

Step 2: Add Agriculture income to the maximum exemption limit available in the case of the asessee and compute tax on such amount as it if is the total income

Step 3: Deduct the income tax computed under step 2 from the step 1.

Taking this as a base. From the case you have mentioned

For the financial year 2007-2008 for a male assessee

Step 1 : Income tax on aggregate income i.e. 9 lacs + 1 lacs = 10 lacs - 1 lac under 80C = 9 lac . Tax for this is Rs. 219000.

Step 2 : Add 110000 to Agriculture income i.e. 1 lac  = 2,10,000. Tax on this is 16,000

Step 3 : 2,03,000.

Add cess @ 3% i.e. 6090 and the resultant tax is Rs.209090.

You may note if the agriculture income is not there then basic tax would have been only Rs. 189000 as against Rs. 203000 (as computed now)

Now you will know that Agriculture income is not exempted for those who has non agriculture income :( !..

Sathya

9444415038

Answer 3

Agricultural income is exempted from income tax u/s. 10(1). You can show the income in your returns and claim exemption u/s 10 (1).