The government is set to introduce stringent curbs to check tax evasion by claiming earnings as agricultural income after lapses were pointed out by the Parliament’s Public Accounts Committee over blanket exemptions.
According to a report by Hindustan Times, rich farmers who earn more than Rs 10 lakh a year, will be put through stringent tests. Tax authorities will go through details of their agricultural income, which is tax-free under the law, as per the finance ministry's response to a parliamentary committee.
The report stated that around a quarter of tax-free claims are approved without proper assessment, citing the committee.
In a report by CAG titled 'Assessment related to Agricultural Income,' released past Tuesday, a case pertaining to tax exemption over an income of Rs 1.09 crore from an instance in Chandigarh was mentioned.
Further, the report stated that to counter the lack of manpower, the finance ministry has set a threshold of Rs 10 lakh per annum. “The mere mention of a tax on agriculture scares politicians. While a majority of farmers are poor and should be granted exemption, there’s no reason why big farmers should not be taxed,” a former income-tax department official was quoted as saying in the report.
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Published 08 April 2022, 10:27 IST