Steps of Partial Integration
Step 1 Calculate Total Income [ Agriculture & Non Agricultural ]
Step 2 Calculate tax on total Income
Step 3 Calculate Agriculture Income + Maximum Exemption Limit.
Step 4 Calculate Tax .
Step 5 Calculate Difference in tax [Step 2 − Step 4]
Step 6 Reduce Rebate (if any)
Step 7 Add Education Cess @ 3 %
Step 8 Calculate Tax+ Cess
Practical of Partial Integration
Example 1
Mr. A is an Resident Individual of Age 50, having Income from Agriculture
Worth Rs.400000 and other Business Income of Rs.300000. Calculate his Income Tax liability as per Income tax Act, 1961.
View AnswerPartial Integration is applicable as
Agricultural Income >5000
And
Non Agriculural Income >250000
Particulars 
Amount 
Agricultural Income 
400000 
+ Non Agricultural Income 
300000 
Total Income [ Agriculture & Non Agricultural ] 
700000 
Tax on Total Income 
65000 
(700000500000)*20%+25000 



Total of [Agricultural Income + Maximum Exemptions Limit] (400000+250000) 
650000 


Tax on above 

(650000500000)*20%+25000 
55000 


Diff in Tax 
10000 
Less 

Rebate 
0 
Net Tax 
10000 
Add 

Cess @3% 
300 
Total Tax 
10300 
ea
Example 2
What is the excess tax paid because of agricultural Income
View AnswerTax payable because of Agricultural Income=10300
Tax payable if there was no Agricultural Income
Agricultural Income 
Amount 
Non Agricultural Income 
300000 
Total Income 
300000 
Tax (30000025000) 
5000 
Less : 

Rebate 
2000 
Net Tax 
3000 
Add: 

Cess 
90 
Tax + Cess 
3090 
Hence excess tax paid because of partial integration=103003090=Rs.7210
ea
Example 3
Solve example 1. assuming Agricultural Income = 4000 and Non Agricultural = 300000
a
There is no partial Integrations as Agricultural Income does not exceed 5000
Hence tax is calculated same as in example 2
Agricultural Income (Exempt) 
Amount 
Non Agricultural Income 
300000 
Total Income 
300000 
Tax (30000025000) 
5000 
Less : 

Rebate 
2000 
Net Tax 
3000 
Add: 

Cess 
90 
Tax + Cess 
3090 
ea
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