GENERAL KNOWLEDGE

Detailed explanation-1: -Partial Integration is done in order to deny the benefit of slab rate. It is done only in cases of those assessees who get the benefit of slab rate like Individual/HUF/AOP/BOI and that too only if Agricultural Income >5000 and Non Agricultural Income > non taxable slab rate.

Detailed explanation-2: -However, the Income-tax Act has laid down a method to indirectly tax such income. This method or concept may be called the partial integration of agricultural income with non-agricultural income. It aims at taxing the non-agricultural income at higher rates of tax.

Detailed explanation-3: -An assessee may have composite business income which is partially agricultural and partially non-agricultural, for example, where XYZ Ltd. grows potatoes and further processes its produce to sell them as wafers. In this case the company has composite income i.e. from agriculture and from business.