Mohit Yadav, BML Munjal University
ABSTRACT
Tax on agricultural income is widely debatable. Agricultural sector is the backbone of India’s economy. There are some advantages of imposing tax on agricultural like revenue generation, income redistribution, growth of economy etc. Along with the pros there are some cons of it as well. Majority of farmers are small and marginal and taxing the agricultural income will impact them in a significant way. Through this research paper I will examine the benefits of taxing agricultural income and some key issues in front of the government. Firstly, I will introduce the reader with some provisions and the legal framework of tax, followed by brief history on taxing agricultural income. Secondly, I will discuss the benefits of taxing agricultural income and the issues of it. Lastly, I will discuss some mechanisms which the government can use for making proper policy for taxing the agricultural income.
Keywords: Threshold, Fiscal Deficit, Revenue, Redistribution, Tax slabs
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