Question

Mr. James is a resident in India aged 63 years who earned an
agricultural income of 30,000 during the previous year
2018 - 19. Compute tax liability of Mr. James assuming that
he has non-agricultural income of 4,00,000.​

Answer 1

Answer:

net tax payable =   5250

Explanation:

            income from agriculture            30000

add      income from non agriculture   400000

                                                                                 

               total integrated income                             430000

tax on integrated income senior citizen

upto 300000   -    nil

300000-500000- 5%       =  6500

tax on agricultural income

agricultural income + basic slab rate

ie, 30000+300000 = 330000

tax on AI

upto            300000    -   nil

300000-500000         - 5%  =  30000*5% = 1500

net tax payable

tax on integrated income - tax on agricultural income

ie,                6500 - 1500  = 5000

add educational cess 3%=  250

                                                               

     net tax payable             5250