TREATMENT OF AGRICULTURAL INCOME

Agricultural income is integrated with non-agricultural income of an Individual, Hindu Undivided Family, Association Of Persons and Artificial Judicial Person whose total income excluding agricultural income exceeds the minimum taxable limit and agricultural income exceeds Rs.5000/-. At present the taxable limit of the non agricultural income is Rs.1, 10,000/-, in the case of women it is Rs.1, 45,000/- and it is Rs.1, 95,000/- for senior citizens.

Method of integration

1. Net agricultural income is integrated with non- agricultural income.
2. Income tax is calculated on this integrated income at the rates prevailing each assessment year
3. Then income tax will be calculated on the net agricultural income as increased by an amount of Rs.1, 10,000/- or Rs.1, 45,000/- or Rs.1, 95,000 as the case may be
4. Income tax calculated under no.3 above is deducted from the income tax calculated no.2 above.

CASUAL INCOME

Any receipts, which are of casual or non-recurring nature like winning from lottery, cross word puzzle, card games or any sort of gambling or betting etc treated as casual income