The Finance Minister Arun Jaitley said that, the Central Government has no plan to impose any tax on Agricultural 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 also 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 stated that this is neither the view of the Niti 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 clarified that the views on Taxing Farm Income expressed by Member Bibek Debroy were personal and not those of the Aayog.
