Tahlka News Bureau
New Delhi: Finance Minister Arun Jaitley on Wednesday briefing media said The Centre has no plans to impose any tax on agriculture.Referring to the media he said "I have read the paragraph in Niti Ayog Report entitled 'Income tax on agriculture income'. To obviate any confusion on the subject, I categorically state that the Central Government has no plan to impose any tax on agriculture income," Jaitley said in a statement.
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"As per the Constitutional Allocation of Powers, the Central Government has no jurisdiction to impose tax on agricultural income," the FM said.
Niti Aayog, the government's think tank, has strongly backed taxing of agricultural income above a certain threshold and removal of exemptions on personal income tax as part of a strategy to expand the tax base and prevent evasion.Also it aim was to protect farmers.
It was being misused by many non-farmers who declare agriculture as their source of income to evade tax.