Centre has no plan to tax farm income : Jaitley

Centre has no plan to tax farm income : Jaitley
 A day after the government's policy think that Niti Aayog made a strong pitch for taxing agricultural income in the country. Finance Minister Arun Jaitely Wednesday said the Centre has no plans to impose any tax on farm income.
 
"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. As per the Constitutional allocation of powers, the central government has no jurisdiction to impose tax on agricultural income," Jaitley said in a statement.
 
Niti Aayog member Bibek Debroy had on Tuesday suggested that taxes should be imposed on farm income above a certain threshold to expand the tax base.

"On expanding the base on the personal income tax side, other than elimination of exemptions, is also to tax rural sector, including agriculture income above certain threshold," Debroy had told reporters.
 
The Aayog, however, distanced itself from the Debroy's comment saying the views expressed by him were his own and not that of the Aayog.
 
“In another statement, the Aayog said, “several newspaper reports published on April 26th, 2017, state that NITI Aayog or its draft Three Year Action Agenda has recommended that farm Income in India be taxed to expand the existing income tax base.
 
“The NITI Aayog categorically states that this is neither the view of the Aayog nor is such a recommendation made anywhere in the draft Action Agenda document as circulated to the Governing Council at the meeting on 23rd April 2017”.
 
“NITI Aayog notes that the views on taxing farm income expressed by member Bibek Debroy were personal and not those of the Aayog,” the Niti Aayog statement said.
 
Taxing agriculture income in India is a sensitive issue and politically untenable even though several economists have time and again suggested to the governments on the need to tax rich farmers.

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