Should we tax agricultural income in India?
Agricultural income is not taxable under Section 10 (1) of the Income Tax Act as it is not counted as a part of an individual’s total income. However, the state government can levy tax on agricultural income if the amount exceeds Rs. 5,000 per year.
Would you advocate that the income of rich farmers should be taxed in India give reasons?
In other words, there is no point in leaving rich farmers out of tax and taxing others. Better subsidies: Adequate tax data would help the Government to identify the small and big farmers by which the targeted subsidy schemes in future can be rolled out to benefit the needy.
Is TDS applicable on agricultural income?
However, the sale or purchase of agricultural land is not covered by Section 194IA for TDS on Property. On the sale or purchase of agricultural land, TDS on Property shall not be applicable, regardless of whether the transaction value exceeds Rs. 50 lakhs.
Is agriculture income taxable in India Quora?
Agricultural income is income tax free in India, under section 10(1) of income tax act. Reason is that agricultural income is subject to Land revenue (Lagaan) in India, since ancient times, the right to levy land revenue is with state governments.
Should agriculture income be taxed?
As per section 10(1), agricultural income earned by the taxpayer in India is exempt from tax.
Why are farmers not taxed?
Under section 10(1) of the Income Tax Act, 1961, agricultural income is exempted from tax. Any proceeds from rent, revenue or transfer of agricultural land and incomes from farming are considered as agricultural income under the law.
How do you justify agriculture income?
Agricultural Income – Section 10(1) In this case following three conditions have to be satisfied for income to be treated as agricultural income: Rent or revenue should be derived from land; Land has to be situated in India (If agricultural land is situated in a foreign country, the entire income would be taxable); and.
How much agriculture income is tax free in India?
Agricultural income earned by a taxpayer in India is exempt under Section 10(1) of the Income Tax Act,1961. What is more shocking and surprising is that this so-called agricultural income is tax-free without any limit.
Should farmers come under a tax bracket?
No, only agriculture income from land situated in India is exempt from tax.
Which agriculture income is exempt?
Is agricultural income wholly exempt from income tax? Agricultural income is wholly exempt from tax provided that the individual’s i) total agricultural income is less than Rs. 5,000 and ii) the total income, excluding agricultural income, is less than basic exemption limit.