Individuals Analysis on India’s Shopper Financial system (PRICE) MD and CEO Rajesh Shukla stated that the federal government ought to take into account taxing agricultural revenue moderately. Talking at Enterprise Right this moment’s India@100 Summit, Shukla stated that the federal government ought to take into account taxing agricultural revenue.
“If a farmer’s revenue is ₹25 lakh, the place 25 per cent is non-farm revenue, I believe the time has come to not less than suppose it must be moderately taxed,” the PRICE MD and CEO stated. These farmers sometimes have bigger landholdings, entry to fashionable expertise and are extra concerned in industrial agriculture.
Shukla additional defined that the farmers’ revenue and the revenue of rural persons are two completely different ideas. He additionally stated that for a lot of farmers who’re incomes greater than ₹15 lakh each year, 30-35 per cent share of their revenue is coming from non-agricultural actions.
“When you have a look at the farmers, there are farmers who’re incomes lower than ₹1 lakh each year. There are roughly 50 lakh farmers, which now we have estimated, are presently incomes ₹15 lakh each year and the share of agriculture of their revenue is 65 per cent means 35 per cent is coming from non-agricultural actions,” he stated.
At current, agricultural revenue is mostly exempt from revenue tax in India underneath Part 10(1) of the Earnings Tax Act. Agricultural revenue, nonetheless, can impression the taxation of different taxable revenue, significantly if a taxpayer has agricultural in addition to non-agricultural revenue.
Primarily based on information from the ICE 360° survey performed by PRICE, these rich farmers even have investments past farming gear. Round 67 per cent of rich farmers personal 2-wheelers, 29 per cent personal automobiles, and solely 28 per cent personal tractors, indicating their investments past simply fundamental farming gear.
Additional, the survey revealed that rich farmers management 28 per cent of the agricultural sector’s revenue regardless of making up solely 8 per cent of the farming inhabitants.
Round 45 per cent of those farmers additionally get advantages underneath the PM-Kisan Samman Nidhi scheme. These rich farmers are primarily concentrated in developed rural areas of Andhra Pradesh, Punjab, Kerala, Haryana, Tamil Nadu, and Karnataka.
