Agricultural Income Tax Liability

My agriculture income exceeds INR 5,000 and there are other sources of income too,. How will the tax liability be calculated?

Thanks in advance!

Hey @riya_gupta

In such a case, the tax liability for that year is calculated following the procedure as under:

  • Compute income tax on the aggregate income (i.e. agricultural income + other income) as per the prevailing income tax rates.
  • Compute income tax on sum of amount of basic exemption limit plus agriculture income as per the prevailing income tax rates.
  • Now, Compute (1) – (2) to arrive at the tax liability for the year.

For more details on this, you can refer to this article.