RE:query about tax exemption
by Amitabh on Apr 28, 2007 01:41 PM Permalink
Agricultural income is fully exempt rom tax.However,if the same is more than Rs 5000 in a year,it is taken into account to determine the rate at which your other incomes will be taxed.Suppose,the exemption limit is Rs 1,10,000 and your income from business is Rs 2,50,000 and agricultural income is Rs 20,000.First you will have to calculate tax on total Rs 2,70,000 assuming agricultural income as taxable.Now add agricultural income to the exemption limit,so you have Rs 20,000 plus Rs 1,10,000.This ccomes to Rs 1,30,000.Now calculate the tax on Rs 1,30,000 also.Now subtract this figure of tax from the tax you calculated for Rs 2,70,000.The figure so arrived at will be your tax liability.Now add surcharge/cess as applicable.Hoever,the above procedure would be applicable only if the agriculture income is Rs 5000 or more.This is what is written in the article.
RE:query about tax exemption
by Amitabh on Apr 29, 2007 01:22 PM Permalink
No,if the income taxable in India is below minimum taxable amount.If the income is beyond that limit,they have to file the return.However,there are certain categories of income for which non residents are taxable at a special rate.They pertain to dividends,interest income from units of mutual funds,UTI,bonds or shares purchased in foreign currency and capital gains arising on their transfer.If the non resident's income consists only of those and tax has been duly deducted at source,the non resident shall not be required to file any return even if the amount is above the minimum taxable amount.
RE:query about tax exemption
by naveen fernandes on Apr 28, 2007 11:52 AM Permalink
It is tax free irrespective of the amount. The example takes an annual figure.
