Tax Agricultural Income
It is surprising that government is hesitant to collect Income Tax on agricultural income. In this connection it is important to note the following points:-
1. The tax on income from Agriculture activity can be levied by State Governments.
2. The provision in Income Tax Act 1961 to exempt Agricultural income from tax is being used by rich farmers consisting of Politicians and Business men to avoid paying income tax by showing a large portion of income from agriculture.
3. The exemption limit of Rs.2,50,000/- for income tax is more than sufficient for poor farmers.
In spite of PM's slogan that "Na khaunga, na khane doonga" in last four years no action is taken on looting of tax money by rich in the name of agriculture. more
1. The tax on income from Agriculture activity can be levied by State Governments.
2. The provision in Income Tax Act 1961 to exempt Agricultural income from tax is being used by rich farmers consisting of Politicians and Business men to avoid paying income tax by showing a large portion of income from agriculture.
3. The exemption limit of Rs.2,50,000/- for income tax is more than sufficient for poor farmers.
In spite of PM's slogan that "Na khaunga, na khane doonga" in last four years no action is taken on looting of tax money by rich in the name of agriculture. more
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Even if the Agricultural Income is NOT taxed, but one is made to file the IT returns if the total income is more than the minimum limit for exemption of IT. For example, say the first IT slab is, say, at Rs 2.50 lakhs, and the Income Tax starts getting applied above this income level, then all such assesses must file the tax returns and specify the details of their agricultural income as well as the details of their agricultural land, and then claim taxes. This will highlight the corrupt politicians claiming Rs 4000 Crores income from a small piece of land of 5 Acres, because they will have to explain it, if and when asked by IT department. more
May 21
I am of the view, that Income tax on Agricultural Produce should be levied on all such farmers whose land resource is more that 5 acres; the land is fertile and well irrigated. Those marginal farmers who take bank loans etc should be exempt. As a first step, the govt should do this. It is well known that big land holdings belong to the well and rich businessmen, politicians, bureaucrats. With the benami act in force, all the big sharks will come in the tax net. more
Apr 16
This law was done, not keeping farmer's in mind. It was done for politicians and business people to avoid tax. Amending is also a problem. Congress party will start publishing that farmers are taxed even though sizable limit for exemption is fixed to help farmers having income at a low level. more
Apr 15
Mr. Mohit Pande ji is more than right! However, it is a well known fact that the benefit of the exemption on Agricultural income from Income Tax is mostly taken by large farmers, businessmen and politicians. Majority of the farmers in our country have no taxable income and there is no use such a provision for such real farmers. The provision in the I.T. Act has, obviously, been retained with deliberate intention to get benefitted by the rich people in the name of "Agriculturalists". It is high time for some one to undertake a research to find out as to who are the ones getting benefits out of the above provision and how many of them are "real farmers"? The existing exemption provision must be amended to make it more stringent to see that only those whose sole income is from "cultivation" can taken this exemption and no blanket exemption be available to anyone having a small portion of agricultural income. Further, certain income limit also needs to be fixed up rather than granting exemption to rich farmers. However, considering the vote bank politics played in our country, no hope left for us as no politician would dare to touch this field. more
Apr 11
Real facts of cultivation under Revenue Act, Yield Receipts of FCI ; Marketing Yards though relevant to confirm real Agricultural income , are not supported to their Claims/Returns . more
Apr 11
