Agricultural Income
Income Tax Act 1961 under Section 10(1) exempts Agricultural Income from tax. Now that a person earning annual income of 250000 Rupees is not required to pay tax, the exemption for Agricultural Income from tax needs to be reviewed. The amount of Rs.2.5 Lakhs earned by a any Farmer engaged in agricultural activity either on the land belonging to him or on rental basis is sufficient incentive and income above this limit should be taxed like any other citizen. It is a well known fact that in the guise of agricultural income rich people are taking advantage and not paying tax. We request Local Circles to take up this issue with the Finance Minister for deleting Section 10(1) of IT Act in the Finance Bill 2016. more
Income Tax Act 1961 under Section 10(1) exempts Agricultural Income from tax. Now that a person earning annual income of 250000 Rupees is not required to pay tax, the exemption for Agricultural Income from tax needs to be reviewed. The amount of Rs.2.5 Lakhs earned by a any Farmer engaged in agricultural activity either on the land belonging to him or on rental basis is sufficient incentive and income above this limit should be taxed like any other citizen. It is a well known fact that in the guise of agricultural income rich people are taking advantage and not paying tax. We request Local Circles to take up this issue with the Finance Minister for deleting Section 10(1) of IT Act in the Finance Bill 2016. more
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Sir, Yes the government can but it can only be done through constitutional amendment.and it requires special majority in both houses and also ratification of not less than half of the state legislatures... Does not seem possible in near future... more
Jan 03
Mr. Ratan Deep Singh, You are right, taxation of Agricultural income is under State List. However Government can amend the List II of the Schedule to bring it under Central Government to have uniform Policy on Tax on Agricultural income in all States. more
Jan 03
In my opinion, taxation on agriculture is not in the purview of union legislature.. List II. (State list) of the seventh schedule of the constitution gives this right exclusively to the state legislatures. more
Jan 02
