Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: form 3cd :: ACCOUNTING STANDARD :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: cpt :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: VAT RATES :: VAT Audit :: empanelment
 
 
News Headlines »
 Govt to simplify income tax laws, sets up task force under taxman Arbind Modi to study overhaul
 Infosys to configure GST network for filing returns
 Save income tax through mutual fund investment. All you need to know
 Income tax returns (ITR): On sale of property, here is what you should know
 Section 35 of the Income-tax Act?
 Notification regarding extension of last date w.r.t submission of closing stock by dealer.
 Integrated Goods and Services Tax (IGST) Rules, 2017 (As on 15.11.2017)
 Central Goods and Services Tax (CGST) Rules,2017 (As on 15.11.2017)
  101st Constitution Amendment Act, 2016
 Pr. Commissioner Of Income Tax-6 Vs. Mccain Foods India Pvt. Ltd.
 Section 10 of the Income-tax Act, 1961

Who should tax farm incomes?
August, 23rd 2006
The issue needs to be looked at not as one of jurisdiction but one of sincere enforcement. The Government's rejection of a Parliamentary Committee's recommendation to bring within the tax net the agricultural income of persons having both agricultural and non-agricultural income, is not altogether surprising. With the taxation of farm incomes clearly falling within the purview of State governments, any attempt to bring such incomes directly under the Central income-tax fold is fraught with legal challenges. A constitutional amendment to the effect does not make sense, even assuming that such a proposal would at all pass muster with the States, given their sensitivities on regional autonomy. In any case, granting the authority to tax incomes or profits accruing in a particular sector without the corresponding obligation to trigger investments or otherwise promote economic activity in that sector would be a travesty of all accepted principles of public administration. For the Centre to take over the complete responsibility for the development of agriculture in the States is unthinkable. And it would be a folly to believe that regional parties and State-level politicians would willingly submit themselves to the vicissitudes of a Central policy over a subject that sustains a vast majority of the local population. The best that can be done under the present dispensation is for the Centre to take note of the quantum of agricultural income earned by an individual and subject his residual income to a higher rate of taxes. Such an arrangement is already part of the current income-tax code. But, unfortunately, given the consolidation of income-tax rates to just three and the fact that incomes slabs have also been widened has meant that the above provision has lost of much its earlier potency. It is one thing to say that the Centre need not get involved in taxing agricultural incomes under the prevailing Constitutional arrangement but quite another to endorse the present laissez faire approach to agricultural incomes adopted by the States. They collect next to nothing from such levies, as is evident from the fact that such collections, according to Budget estimates for 2005-06, formed a mere Rs 82 crore against Rs 2,15,000 crores raised by the States themselves as tax revenues. No doubt, farming for a vast majority of those engaged in it, is far from remunerative, providing nothing more than bare subsistence. The situation is compounded by the fact that farm holdings over the years have been shrinking, further eroding whatever viability exists for tax purposes. Having said that, it does strain one's credibility to accept that an activity generating nearly Rs 6 lakh crore in net output, should contribute so paltry a sum as the amount currently being collected by way of agricultural income-tax. The issue needs to be looked at not as one of jurisdiction but one of sincere enforcement.
 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Website Ranking Website Ranking Company Website Positioning Alexa Ranking Website Promotion Website top 10 ranking website top 10 promotion search engine result promotion Strategic Internet Marketing Website Optimization Website Ranking Factors

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions