Tax non-agricultural income

Tax non-agricultural income, where assessee earns agricultural as well as non-agricultural income : 

The scheme of partial disintegration is applicable if assessee is an individual  or Hindu undivided family or association of persons or body of individuals or an artificial juridical person and he earns agricultural income more than Rs. 5,000 and non-agricultural income more than the amount of exemption limit.

Computation of tax in cases covered by the scheme – In cases covered by the scheme, income-tax will be computed for the assessment years 2011-12 and 2012-13 in the following manner:

1. Net agricultural income is to be computed as if it were income chargeable to income-tax.
2. Agricultural and non-agricultural income of the assessee will then be aggregated and income-tax is calculated on the aggregate income as if such aggregate income were the total income.
3. The net agricultural income will then be increased by an amount of exemption limit and income-tax is calculated on net agricultural income, so increased, as if such income was the total income of the assessee.
4. The amount of income-tax determined at (2) will be reduced by the amount of income-tax determined under (30.
5. The amount so arrived at will be the total income-tax payable by the assessee before surcharge and education cess and secondary and higher education cess.