How compute tax when your total income contains agriculture income ??

Insight of Agriculture Income Tax

It is well establish fact that government announce many key productive benefits to farmers as part of green revolution aim. Even in latest budget for FY 2023 24 major focus is on sustainable growth of rural India by passing on maximum benefit to small farmer. 

Facts to be considered while you compute taxable income of farmers: (Agriculture Income Tax)

1) Individual having only agriculture income —– No tax liability on agriculture income.

However assesses will need to provide some additional details like place of farm and irrigated or not if agriculture income is more than 5 lacs rupees.

2) Individual having agriculture income and also have other heads of income as a part of total income. —— 

Tax liability is computed as under:- ( only if  NAI >  Rs.5000 and TI > Rs.250000.)

NAI means Net Agriculture Income , TI means Total Income in addition to NAI.   

Tax on total income = [ (a) * applicable slab rates – (b) * applicable slab rates ] 

(a) Calculation for Taxable income  = TI + NAI

(b) Calculation for Taxable income = Rs.250000 + NAI