# How To Calculate Agricultural Income

HOW TO CALCULATE AGRICULTURAL INCOME (AY 2019-20)

EXAMPLE 1 :

AGRICULTURAL INCOME = 300000

WORKINGS

STEP 1 : TAX ON INCOME INCLUDING AGRICULTURE  =  800000

FIRST  250000  =   NIL

SECOND 250000= 12500 (250000*5%)

BALANCE 300000=60000 (300000*20%)

TOTAL TAX  = 72500 (12500+60000)

STEP 2 : TAX ON AGRICULTURAL INCOME =  300000

ADD : BASIC EXEMPTION LIMIT OF AN INDIVIDUAL = 250000

( ASSUMED THAT THE INDIVIDUAL IS BELOW 60)

TOTAL INCOME =  550000

TAX ON TOTAL INCOME

FIRST 250000 = NIL

NEXT 250000 = 12500 (250000*5%)

BALANCE 50000 = 10000 (50000*20%)

TOTAL TAX  =  22500 (12500+10000)

STEP 3 : DIFFERENCE BETWEEN 1 AND 2

BALANCE TAXABLE AMOUNT = 50000 (72500-22500)

TOTAL  TAX   = 50000

EDUCATION CESS = 2000 (4%)

TOTAL TAX LIABILITY = 52000 (50000+2000)

#### Author Bio

Name: nithi
Qualification: Student - CA/CS/CMA
Company: XYZ COMPANY
Member Since: 17 May 2019 | Total Posts: 1

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#### One Comment

1. A tiwari says:

Why 2,50,000/- exempted twice in the second method.
Which method is correct?

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