Raipur. On one hand, the central government is putting money in the accounts of small and poor farmers. On the other hand, to bring transparency in the tax system, the government can work on bringing high earning farmers under the tax net. According to media reports, these things have come to light from the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI).
Let us tell you that Union Finance Minister Nirmala Sitharaman is going to present the interim budget on 1 February. Earlier, MPC member Ashima Goyal said that government payments to farmers are like a negative income. Along with this, the government can implement a positive income tax for rich farmers with low rates and minimum exemptions.
Let us tell you that at present there is no provision for tax on agricultural income under Section 10(1) of Income Tax. However, income from all types of farming is not exempt from income tax. Those agricultural incomes have been defined under Section 2(1A) of the Income Tax Act. On whom income tax is not levied in the country.
