How to Compute Tax In Case You Have Agricultural Income

While clubbing the agricultural income with non-agricultural income for tax purpose , whether non- agricultural income to be taken at gross income or net taxable income after deduction u/s. 80C ?Mahesh
The non-agricultural income is the total income without consideration of agricultural income. The total income is found out by gross total income minus deduction u/s 80C.
For example , for asst yr 2007-08 if an Individual male person has net agricultural income of R 40,000 and non agricultural income of Rs 2,00,000 . Let us say the person has deposited Rs 30,000 in PPF. In this case , the computation of tax will be as follows

Gross Total Income Rs 2,00,000
Less
Dedcution u/s 80C –deposit in PPF Rs 30,000
Total Income Rs 1,70,000
Computation of Tax
Tax on Rs 1,70,000 + Rs 40,000 (Rs 2,10,000) Rs 17,000
Less
Tax on agricultural income :
Rs 40,000 +Rs 1,00000 (exempt limit) Rs 4000
—————
Rs 13,000
Add Education S.C 2 % 260
Tax payable 13,260

In nut shell, the non agricultural income is taken after reducing deduction under chapter VIA like 80C