Farmer News: Now the richest farmers of the country are on the radar of Income Tax Department. Agricultural income is exempted from tax under the Income Tax Act. However, the income tax department will take information of farmers whose income is more than 10 lakhs. Therefore, now the tax free claims of rich farmers will be investigated. The Public Accounts Committee of the Parliament has taken a decision in this regard.

Agricultural income is tax free under the Income Tax Act of 1961. It has been made tax-free as it was needed then. We also often see that the finance department suspects that politicians, businessmen, big builders will show agricultural income to get tax exemption from their income. Therefore, the Accounts Committee of the Finance Department has decided yesterday that the income tax details of those whose income is more than Rs 10 lakh will be scrutinized. Is it really agricultural income from it? We’ll try to find out.

In about 22.5 per cent of the cases, the authorities have allowed tax-free claims without proper assessment and verification of documents. The committee has said that this creates scope for tax evasion. The panel on Tuesday released its 49th report on agricultural income assessment. This information is given in it. Meanwhile, it is based on the report of the Auditor General and Comptroller General of India. One such case involves tax exemption on income of Rs 1.09 crore from sale of agricultural land in Chhattisgarh.

So now it will be more difficult to evade taxes, show more agricultural income. The government has told the Public Accounts Committee of the Parliament. Several flaws have been pointed out in the blanket exemption.
Agricultural income is exempt from tax under section 10(1) of the Income Tax Act, 1961. Any amount derived from rent, revenue or transfer of agricultural land and income from agriculture is treated as agricultural income under the law.