why tax is not levied on agriculture income in India? - Professionals - Taxation - TIK Share
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why tax is not levied on agriculture income in India?


Rahul Rai

2015-01-25

Why income tax or any other tax is not levied on agriculture income in India? What is the reason behind not taxing the agriculture income in India?

I know income tax act and state vat acts have specifically exempted agriculture income, but what is the reason for such exemption?

Do any other country also exempts agriculture and farmers from taxation?

Prakash mehta

2015-01-27

I think constitution of India by vertue of List I, Entry 82, gives exclusive power of taxing agriculture income to states and not to center and that could be reason that agriculture income is not taxed under Income Tax Act, which is center act.

Regarding why state has not levied tax may be due to political pressure. Otherwise also Mahatma Gandhi never wanted to tax agriculture products, that could be another reason.

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