Agricultural Income Calculator India โ FY 2025-26
Calculate how agricultural income affects your tax through the aggregation (partial integration) method under the old regime. Compare old vs new regime to see if the rate pushup costs you more than the deductions save. Check which income sources qualify as agricultural under Section 10(1) and Section 2(1A).
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How to Use This Calculator
Tax with Agricultural Income tab
Enter your non-agricultural income (salary, business, professional, rental, capital gains) and agricultural income (crop cultivation, rent from agricultural land, farm buildings). Select the tax regime — under the old regime, the calculator applies the aggregation (partial integration) method to show how agricultural income pushes up your tax rate. Under the new regime, agricultural income is simply exempt with no rate effect.
With vs Without Agriculture tab
See the rate pushup effect side-by-side. The calculator shows your tax without aggregation (as if you had no agricultural income), your tax with aggregation under the old regime, and your tax under the new regime. This helps you decide which regime saves more money when you have significant agricultural income.
What Counts as Agricultural? tab
Select your income sources from the interactive checklist. Each source is classified as EXEMPT (qualifies as agricultural income) or TAXABLE (does not qualify). Click any item to see detailed guidance with legal references on why it does or doesn’t qualify under Section 2(1A).
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The Formula
Agricultural income is exempt under Section 10(1), but under the old regime it affects your tax rate through the aggregation method:
Step 1: Calculate tax on (Agricultural Income + Non-Agricultural Income − 80C Deductions)
Step 2: Calculate tax on (Agricultural Income + Basic Exemption Limit of ₹2,50,000)
Tax Payable = Step 1 − Step 2
Conditions for aggregation:
• Agricultural income > ₹5,000, AND
• Non-agricultural income > basic exemption limit (₹2,50,000)
New Regime: NO aggregation. Agricultural income is simply exempt. Tax = slab calculation on non-agricultural income only.
Old Regime Tax Slabs (FY 2025-26):
0 – ₹2,50,000: Nil
₹2,50,001 – ₹5,00,000: 5%
₹5,00,001 – ₹10,00,000: 20%
Above ₹10,00,000: 30%
Section 80C deduction: up to ₹1,50,000
Section 87A rebate: up to ₹12,500 if taxable income ≤ ₹5L
New Regime Tax Slabs (FY 2025-26):
0 – ₹4,00,000: Nil
₹4,00,001 – ₹8,00,000: 5%
₹8,00,001 – ₹12,00,000: 10%
₹12,00,001 – ₹16,00,000: 15%
₹16,00,001 – ₹20,00,000: 20%
₹20,00,001 – ₹24,00,000: 25%
Above ₹24,00,000: 30%
Section 87A rebate: up to ₹60,000 if taxable income ≤ ₹12L
Surcharge: 10% (₹50L–1Cr), 15% (1–2Cr), 25% (2–5Cr), capped at 25% under new regime
Health & Education Cess: 4% on (income tax + surcharge)
The aggregation method ensures that while agricultural income remains exempt, it pushes the non-agricultural income into higher tax slabs — a mechanism called “partial integration” or “rate pushup”.
Example
Ramesh — Salaried employee with farmland, non-agri ₹12L + agri ₹3L
Ramesh (42) works as a bank manager with a salary of ₹12,00,000 (₹12 lakhs). He also earns ₹3,00,000 (₹3 lakhs) from wheat and rice cultivation on his ancestral agricultural land. He claims ₹1,50,000 under Section 80C.
Old Regime — Aggregation Method
Step 1: Tax on combined income (₹10,50,000 + ₹3,00,000 = ₹13,50,000)
Step 2: Tax on (agri + basic exemption = ₹3,00,000 + ₹2,50,000 = ₹5,50,000)
Tax payable = Step 1 − Step 2
Comparison: Without aggregation (if no agri income)
New Regime (no aggregation)
Ramesh saves ₹2,02,800 by choosing the new regime. The new regime gives him zero tax (₹12L qualifies for full 87A rebate) while the old regime costs ₹2,02,800 due to the aggregation method pushing his income into the 30% slab. Despite losing the ₹1.5L 80C deduction, the new regime wins decisively here.