Tax on agricultural land sale
Guest
(Querist) 08 September 2011
This query is : Resolved
I thank all who gave their opinion,but I'm still seeking an expert-opinion(if possible,by a tax consultant).
It's always better to take opinion of 10 professionals or experts than just going to one person.I'd consult him after hearing from you all.
I'm working,pay taxes and file returns(it's with reference to Shri Prabhakar Singh's statement that income from land sale will be clubbed with other income).
More advice on this subject is welcome !
Thanks once again !
Raj Kumar Makkad
(Expert) 08 September 2011
Although agricultural income is not taxable, it must be included with non-agricultural income in the case of non-corporate assessees who pay tax at prescribed slab rates. Resultantly, the rate of tax on non-agricultural income is higher for such assessees. Take the case of Tushar Singh, who earned an agricultural income of Rs 1,50,000 and non-agricultural income of Rs 2 lakh during the year ended March 31, 2009. Singh’s tax liability is to be calculated as follows:
(a) Agricultural income (Rs 1,50,000) plus non-agricultural income (Rs 2 lakh) = Rs 3.5 lakh.
(b) Income tax on Rs 3.5 lakh = Rs 25,000
(c) Tax on agricultural income of Rs 1,50,000 plus basic exemption of Rs 1.50,000 = Rs 15,000.
(d) Tax payable = (b) – (c) = Rs 10,000/-
Singh would have ended up paying Rs 5,000 in taxes on a non-agricultural income of Rs 2 lakh if it wasn’t for the provision governing inclusion of agricultural income for rate purposes. Following the inclusion clause, he pays an additional tax of Rs 5,000 on non-agricultural income.
prabhakar singh
(Expert) 09 September 2011
I thank all who gave their opinion,but I'm still seeking an expert-opinion(if possible,by a tax consultant).
I suppose its a repeated one.
To have tax consultant opinion in particular send a PM to expert Vishal or visit Caclubindia.
pawan sharma
(Expert) 09 September 2011
Dear Singh Sahab, Mr. Rajkumar is an expert, and they well desolved the query. if you add somthing another you should or open for others.
prabhakar singh
(Expert) 09 September 2011
"I'm still seeking an expert-opinion(if possible,by a tax consultant)."
these were the words of author,not mine,Mr. PAWAN JI!
you kindly read his post he has been repeating it all the time that is why advised him to go on caclub, he could not even understood my earlier reply.
Any way i do understand and respect to the knowledge earned by Mr. Makkad and i never meant to ignore his expertise.
so kindly do not misunderstand me,please!
M/s. Y-not legal services
(Expert) 09 September 2011
