What is Partial Integration

What is Partial Integration

Although Agricultural Income is exempt from tax, if a person has both Agricultural income and non agricltural income, he has to pay more tax on Non Agricultutal Income because of concept of Partial Integration

When is Partial integration Applicable

For those Assesses who enjoy benefit of slab rate and having

Agricultural Income >  5000 ,

and

Non Agricultural Income > 250000(i.e., non taxable limit)

the tax is computed through a special method called partial integration as explained below

 

  

Note :

• 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

• No Partial integration in case of other assessees like Companies/ Partnership firm

Example 

Whether partial integration applicable in the following cases?