We all know that under Income Tax Act 1961 agriculture income is exempt. Though if below two conditions are cumulatively satisfied then it is required to be included in computation of tax liability,we have detailed Calculation of tax on agriculture income as per Income Tax Act 1961:
- During previous year net agricultural income exceeds Rs.5000 and
- Excluding agriculture income total income income exceeds Rs.2,50,000.
In case assessee who is individual and age if between 60 to 79 years hence in condition to above amount changes to Rs.3,00,000 and for age 80 and above amount changes to Rs.5,00,000.
Following are the steps for Calculation of tax on agriculture income as per Income Tax Act 1961.
If above mentioned conditions are satisfied we can calculate tax as below:
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