Question:
Read the given statements and choose the correct option:
Statement 1: Agricultural income is exempt from tax under Section 10(1) of the Income Tax Act, 1961.
Statement 2: Tax on Non-Agricultural Income in case of exceeding ₹5000/- is determined by the Scheme of Partial Integration of Non-Agricultural Income with Agricultural Income.
Read the given statements and choose the correct option:
Statement 1: Agricultural income is exempt from tax under Section 10(1) of the Income Tax Act, 1961.
Statement 2: Tax on Non-Agricultural Income in case of exceeding ₹5000/- is determined by the Scheme of Partial Integration of Non-Agricultural Income with Agricultural Income.
Statement 1: Agricultural income is exempt from tax under Section 10(1) of the Income Tax Act, 1961.
Statement 2: Tax on Non-Agricultural Income in case of exceeding ₹5000/- is determined by the Scheme of Partial Integration of Non-Agricultural Income with Agricultural Income.
Updated On: Dec 23, 2024
- Both the Statements are incorrect.
- Only Statement 1 is true.
- Only Statement 2 is true.
- Both the Statements are correct.
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The Correct Option is A
Solution and Explanation
Statement 1 is incorrect: While agricultural income is generally exempt from income tax, there are certain exceptions. For example, agricultural income exceeding a certain threshold is taxable. Statement 2 is incorrect: The scheme of partial integration of agricultural income with non-agricultural income was introduced to tax certain agricultural incomes, but it is not based solely on the exceeding of the basic exemption limit for non-agricultural income and agricultural income exceeding Rs. 5000/-. Therefore, both statements are incorrect.
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