Taxing Agriculture

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Taxing Agriculture

  1. 1. TAXING AGRICULTURE An Economic Necessity Group 11 Yudhir Agrawal Akash Mittal
  2. 2. What is agricultural income? <ul><li>Income from agricultural operations on land </li></ul><ul><li>Income from sale or processing of agricultural produce raised on agricultural land </li></ul><ul><li>Income from rent of agricultural land </li></ul>
  3. 3. Statistics and Facts <ul><li>Agriculture provides employment to approx. 60% of Indian population </li></ul><ul><li>Agriculture contributes approx. 20% of Indian GDP </li></ul><ul><li>As per the Indian Constitution, Agricultural Tax is the purview of State Governments </li></ul>
  4. 4. Statistics and Facts
  5. 5. Statistics and Facts
  6. 6. Target Population <ul><li>Adding those individuals into the tax net who evade taxes by falsely showing their income as agricultural income </li></ul><ul><li>Adding more individuals to the tax net, who generate agricultural income and are worthy of contributing to the development of the country </li></ul>
  7. 7. The way to go… <ul><li>Instructing states for strict implementation of agriculture tax and giving incentives to the states doing so </li></ul><ul><li>Redistributing tax collected from agriculture to the states in the same proportion </li></ul><ul><li>Making necessary constitutional changes to implement the taxation if states fail to act earnestly </li></ul>
  8. 8. The way to go… <ul><li>Individuals can be included into the net by defining “Consumption Points” and maintaining accurate records of the same </li></ul><ul><li>Tax slabs and rates should be same </li></ul><ul><li>Generated revenue to be used only for agriculture infrastructure enhancement and increasing subsidies and crop insurance </li></ul>
  9. 9. Benefits <ul><li>To curb evasion of tax in the pretext of agricultural income and also curb conversion of black money into white </li></ul><ul><li>Encourage environmentally friendly land use because of targeted tax incentives for conservation and land preservation activities and reduced tax benefits for harmful practices </li></ul>
  10. 10. Pitfalls <ul><li>The rural rich save most of their money in the form of gold. Until gold trading is fully regulated and considered as a consumption point, the rural rich will escape from the tax net </li></ul><ul><li>Agricultural tax can be evaded under the pretext of a joint family system </li></ul>
  11. 11. <ul><li>THANK YOU </li></ul>

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