The Interim Budget 2024 has introduced a clarification concerning the taxation of agricultural income under the new tax regime.

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The clarification aims to address the computation of tax slabs for individual and Hindu Undivided Family (HUF) taxpayers who possess both regular and agricultural income.

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According to the prevailing provisions of the Income Tax Act.

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Agricultural income has been exempted from taxation.

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The taxation for individual and HUF taxpayers is typically calculated based on applicable slab rates.

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If an individual has a business income of Rs 8 lakh and agricultural income of Rs 10 lakh.

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The tax slab is set at 30% due to the total income exceeding Rs 10 lakh.

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However, the tax is calculated only on the business income of Rs 8 lakh, preventing the individual from availing a double benefit.