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Friday, March 01, 2024
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Former RBI Governor Pitches to Tax Farm Income Above Certain Threshold

New Delhi: Notwithstanding the repeated assertions of the Finance Minister Arun Jaitely that the farm income could not be taxed, Former Reserve Bank of India Governor Bimal Jalan made a pitch to tax agricultural income above a certain threshold without compromising the interests of the small farmers.


“As per the Constitutional Allocation of Powers, the Central Government has no jurisdiction to impose tax on agricultural income,” said Arun Jaitely whose response comes close on the heels of the NITI Aayog member Bibek Debroy’s suggestion to tax agriculture income.


According to Jalan high growth and low inflation are the main achievements of the NDA government but a lot more need to be done when it comes to reducing corruption. The complex administrative system is also in need of reform.


Recently NITI Aayog Vice-Chairman Arvind Panagariya had ruled out the possibility of taxing agriculture income at a time when the government is looking to double the farmers’ income by 2022.