GK
INDIAN ECONOMY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Output method
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Input method
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Expenditure method
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Commodity flow method
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Detailed explanation-1: -The output method for agriculture income includes income for farming, income from the farming land, building structures, farmhouse, types of equipment. The agricultural income is not taxable because it is not taken as a part of a person’s total income.
Detailed explanation-2: -Example – Let us say that an Individual Assessee has a Total income of INR 7, 50, 000/-(excluding Agricultural income) and a Net Agricultural income of INR 100, 000/-. Then, per this step, Tax shall be computed on INR 7, 50, 000/-+ INR 1, 00, 000/-= INR 8, 50, 000/-.
Detailed explanation-3: -Agricultural income is defined under section 2(1A) of the Income-tax Act. As per section 2(1A), agricultural income generally means: (a) Any rent or revenue derived from land which is situated in India and is used for agricultural purposes.