New Delhi, March 15: Arun Jaitley on Tuesday said in Rajya Sabha that the government has no intention of taxing agricultural income, but if someone is misrepresenting non-agricultural income as farm earnings, it will be probed.
An important issue was raised by Janata Dal-United leader Sharad Yadav that many people are hiding taxable income as agricultural income, citing that tax is not being paid and black money is being generated in the name of agriculture and Government should do something for this issue.
Bahujan Samaj Party (BSP) leader Mayawati said that a high level inquiry should probe the allegations."There should be a high-level inquiry and those who have made black money in the name of agriculture should be caught," she said.
A media report on a news channel claimed that weird statistics in the tax of agricultural sector. According to this report generated through an RTI inquiry, in 2011-12 nearly 6.50 lakh farmers earned Rs. 2 thousand lakh crore (approx) which was much more than the annual GDP of the entire country.
An internal letter dated March 10 of the Central Board of Direct Taxes (CBDT) has asked its officials to verify the genuineness of agricultural income claims exceeding Rs 1 crore made by taxpayers in their income-tax (I-T) returns. The move was taken after it was noted in a Public Interest Litigation (PIL) filed in Patna HC that over the years several taxpayers have declared significant agricultural income; especially when agricultural income is exempt from tax.
Finance Minister further said that there are many prominent people who have done this and probe is on against them. When the probe is over and the facts are revealed, don’t call it political victimization. Jaitley also assured that there is no proposal for levying income tax on farmers seeing the situation of agriculture sector.