Agriculture Income

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Harpreet Kaur

Harpreet Kaur (Querist)
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10 September 2010 Why is agriculture income exempt..? wot are the reasons ?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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10 September 2010 To Promote the Agriculture industry and increase the Agricultural production, motivate the Entrepreneurs in the Agriculatural Industry

Harpreet Kaur

Harpreet Kaur (Querist)
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10 September 2010 I mean some other reasons like union and state govt decides something over it..actually this question was asked in an interview and they wanted to knw why govt exempted agriculture income..? help.?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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10 September 2010 As per sec.10(1) exempts the agricultural income from Income tax, the reason behind this, the Indian constitution gives exclusive power to make laws with respect of taxes on agriculture at state legislature. so Agriculatural income not covered and exempted under Income tax which is governed by Central Govt as per constituion

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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10 September 2010 AGREE WITH SIR CMA KRISHNAN JI
AGRICULTURE INCOME AS DEFINED IN SECTION 2(1A) ,

SECTION 10(1) OF THE INCOME TAX EXEMPTS AGRICULTURE INCOME FROM TAXATION BY THE CENTRE. FOR THE PURPOSE OF THIS EXEMPTION THE "EXPRESSION AGRICULTURE INCOME " IS DEFINED IN SUB CLAUSE 1A OF SECTION 2.

THIS EXEMPTION IS NECESSITATED BY VIRTUE OF "ARTICLE 270 OF THE CONSTITUTION OF INDIA " UNDER WHICH THE CENTRAL LEGISLATION IS NOT COMPETENET TO IMPOSE TAX ON AGRICULTURE INCOME . THE STATE LEGISLATION IS ALONE COMPETENE TO TAX AGRICULTURE INCOME .

IN EXERCISE OF THE POWER UNDER CONSTITUTION, MANY STATE GOVERNMENT HAVE IMPOSED TAX ON AGRICULTURE INCOME AS LIKE (ASSAM,WEST BENGAL, ORISSA, RAJASHTHAN, AND U.P., KERALA,BIHAR, ANDHRA PARDESH)
HOPE YOU WILL SATISFY .

REGARDS,

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