Agricultural Income is exempt from Income Tax, but the Income Tax Act indirectly collects tax on Agricultural income.
Applicability: The method of aggregation is applicable to Individuals, HUF, AOP & BOI and not applicable to Firms and Companies.
Minimum Agricultural Income: It is applicable to Assessees whose Agricultural Income exceeds Rs.5000/-.
Minimum Total Income: The Total under IT Act should exceed the maximum amount not chargeable to Tax.
Procedure applicable in computation of Tax:
