HAS AGRICULTURAL INCOME BECOME A TOOL FOR MONEY LAUNDERING IN INDIA ?
Agricultural income earned by a taxpayer in India is exempt under Section 10(1) of the Income Tax Act,1961. What is more shocking and surprising is that this so called agricultural income is tax free without any limit. You can have unlimited amount of agricultural income without paying even a single rupee towards income tax. While income tax is levied on all types of incomes from all the persons, why Government is not imposing any income tax on agricultural income, is a million dollar question. Some people are under the wrong impression that our Government is very considerate and sympathetic towards the farmers community and do not want to impose income tax on agricultural income of farmers. However, this is completely untrue. Had it been the intention of the Government to provide the relief to farmers by not subjecting them to income tax, it could have been done by fixing a threshold for tax free agricultural income. If some type of income is made completely tax free without