5.000 in previous year. (C) Integration is done only if Net Agricultural the relevant previous year. When not to Integrate ? and (iv) Local authorities. year, (a) Integration is not done in case of (i) firms; (ii) Companies ; (iii) Co-operative Societves (b) No integration if Non-agricultural income of all persons mentioned earlier does not exceed (c) No integration if the Net agricultural income does not exceed 5,000 in the relevan 2,50,000 3,00,000R 5,00,000 (as the case may be) in the relevant previous previous year. How to Integrate ? 1. Net Agricultural income is added with the Non-agricultural income if conditions given above are fulfilled. 2. Tax is calculated on this total at current rates of tax. 3. Net Agricultural income is added with the exempted limit. i.e. * 2,50,000R$ 3,00.000 5,00,000 (as the case may be) 4. Tax is calculated on this total at current rates of tax. 5. Tax calculated at point (4) is deducted out of tax calculated at point (2) above. 6. Add surcharge @ 10% of tax if total income exceeds * 1 crore. 7. Add education cess @ 2% + Secondary and Higher Education cess @ 1% of such tay - surcharge, if any. 8. Total is tax payable. 9. Tax payable to be rounded off to the nearest multiple often. ILLUSTRATION 1 732 Mr. Singh, is running a small sugar mill and also is having an agricultural farm of his own. He grows sugarcane and the same is sent to his sugar mill. From the following particulars, find out Mr. Singh's agricultural and non-agricultural income. Total sugarcane crushed in the mill 10,200 tons. Sugarcane produced in own agricultural farm and supplied to own mill 600 tons. Sugarcane purchased from the market is an under : 2,000 tons @ 1,200 per ton 4.000 tons @ * 1,250 per ton 1,500 tons @ * 1,260 per ton 1,500 tons @ 1,280 per ton 600 tons @ 1,300 per ton debited to P&L A/c of the sugar mill. During the previous year the sugar mill earned a Expenses incurred on the agricultural farm during the year are 5,60,000 which has been 6,80,000. profit of