relevant to india
the power to tax agricultural income is with the state govt. And usually the state does not collect tax on this income.
However for the purpose of determining the Income Tax rate, the agricultural income is clubbed with normal income, however if there is no normal income, agricultural income escapes the tax net completely.
However, I am of the view that big farmers earning huge profits have to pay tax, for example the farmers in Punjab are the richest of the lot, yet they pay nothing as taxes, aren't they equally supposed to contribute for the weaker sections of the economy? |
