Threshold for taxing agriculture income should be same as urban income, says Bibek Debroy
Agricultural income should be taxed at the same threshold as personal income, Niti Aayog, the government’s thinktank, has proposed in its draft three-year action plan.
Farm income could be assessed for tax as a three-year average, Niti Aayog member Bibek Debroy said at a press briefing on Tuesday, making a case for widening the taxpayer base.
“There should be no distinction between urban and rural. The threshold for taxing rural agriculture income should be the same as urban income. However, rural agriculture income taxed could be an average of three years as it is subject to weather fluctuations,“ Debroy said, explaining the Aayog’s proposal to expand the country’s tax base.