oppn parties Pseudo Agriculturists Must Be Exposed

News Snippets

  • 84 NDRF teams have been despatched to 23 states to tackle the flood situation
  • Three persons lynched in Bihar after being accused of cattle theft
  • Delhi police seize a consignment of 1500 kgs of heroin and busts a cartel of Afghanistan-Pakistan narcotics dealers with links to the Taliban
  • Supreme Court gives 9 more months to complete the Babri Masjid demolition case trial
  • Priyanka Gandhi not allowed to meet the families of the dead in the Sonabhadra firing, arrested
  • ICC inducts Sachin Tendulkar in [email protected]@@s Hall of Fame
  • Stock markets bleed for the second day. Sensex crashes 560 points
  • S Jaishankar, Minister of External Affairs, says Pakistan should release and repatriate Kulbhushan Jadhav immediately
  • Karnataka Governor Vajubhai Vala asks the Speaker to hold the trust vote latest by 1.30 pm today
  • The Government sends a list of 24 questions to mobile app company that runs video app TikTok seeking answers for anti-national and obscene content carried on the platform
  • Sarvana Bhawan founder P Rajagopal, serving a life term for murder, dies in a Chennai hospital
  • SC allows time till July 31 to the Ayodhya mediation panel
  • IT department attaches "benami" plot worth Rs 400cr in Noida. The plot allegedly belongs to BSP leader [email protected]@@s brother and his wife
  • Dawood [email protected]@@s nephew, Md. Rizwan Iqbal, was arrested from Mumbai airport as he was waiting to board a flight to Dubai
  • Trouble brews in Bihar JD(U)-BJP alliance as Bihar police asks special branch officers to keep tabs on RSS activities
Even after indicating that the trust vote will be held today (he said he cannot delay as he had to face the world), the Karnataka Speaker adjourns the assembly until Monday. Voting is likely to take place on Monday
oppn parties
Pseudo Agriculturists Must Be Exposed

By Sunil Garodia

About the Author

Sunil Garodia Editor-in-Chief of indiacommentary.com. Current Affairs analyst and political commentator. Writes for a number of publications.
Finance minister Arun Jaitley has said that the government has no plans to tax agricultural income as suggested by Niti Aayog member Bibek Debroy. He did not point out that as the law stands today, the Centre is not empowered by the Constitution to tax agricultural income. This power vests solely with the states. In fact, some states tax income from agriculture heavily, especially for cash crops like tea in Assam. If the Centre is to tax agricultural income, it will have to amend the constitution. But if it taxes agricultural income, then it will lead to double taxation, once by the state and then by the Centre.

One believes that it is not as much a question of taxing agricultural income as it is to plug the loophole being exploited by unscrupulous taxpayers to avoid paying taxes on dubious income being passed off as such. Since agricultural income is at present not taxed in income tax but just clubbed with other income for rate purpose, one can inflate one’s income to any extent and yet pay a small amount of tax. This is resulting in a loss of huge revenue for the department.

The basic problem is that people who are declaring agricultural income are doing so with complete disregard to their land holding. If one were to collate their land holding with the income they show from harvesting crops, one would find that the yield per acre would set world records by huge margins. It is this misuse that has to be first stopped. Taxpayers who declare agricultural income for clubbing purpose must be made to give details of their land holding (both leased and owned), the crop sowed, the yield per acre and the proceeds from sale of such yield. There must be a standard yield per acre and crop price location-wise that must be followed by the income tax department to determine and fix such income (much like the circle rate for property tax). If this procedure is followed, much of the grey areas will vanish and the incentive to fudge income will fall in the face of details to be provided. Pseudo agriculturists need to be exposed.