I am a salaried employee and getting Rs.3-4 Lacs per annum. I like to invest some money in agriculture. Shall I get tax benefits? if so how much can I get? If not why?
2006-08-22 16:21:14 · 4 answers · asked by dpbabu 1 in Business & Finance ➔ Taxes ➔ India
Agriculture income is totally tax free for those whose income is below taxable. But for persons whose income is more than taxable limit, then it will be added to the income for rate purpose, that is your tax slab will be increased. I am giving you an example.
1) Your salary income Rs.4,00,000. Tax on It will be Rs.71,400 /-
(2) your salary income Rs.4,00,000, Ag.Income say Rs.1,00,000/-; Your tax will be Rs. 86,700/-. So for you it is not totally free.
At the same time, if you buy Ag.land now and sell the same at a later date, if the ag.land is 8km away from local administration limits called Panchayat limits or Municipality limits (Having more than 10,000 population), then the gains if any from sale of land is tax free. Otherwise you have to pay income tax (Capital gains) on the gains at the time of you sell the lands later.
2006-08-23 04:02:30 · answer #1 · answered by Anonymous · 5⤊ 0⤋
Agricultural income is exempted form tax only if u dont have any other souces of income. In this case u r taxable as u r a salaried employee
2006-08-23 08:33:31 · answer #2 · answered by spice 5 · 0⤊ 0⤋
you will get no deductions but your agriculture income (free from income tax) will be aded to your other income for tax calculation only.
2006-08-23 00:02:20 · answer #3 · answered by prince 6 · 0⤊ 0⤋
yes you will get rebate for details consult the auditors
2006-08-23 05:27:49 · answer #4 · answered by nirmalkumarlenin 2 · 0⤊ 0⤋