India

NITI says no proposal to tax agricultural income

The think-tank panel distanced itself on the issue, saying that the Member Bibek Debroy had spoken in his personal capacity.

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New Delhi: The NITI Aayog on Wednesday stated that there is no proposal to tax the agricultural income in the “Three Years Action Plan” circulated to the chief ministers. The think-tank panel distanced itself on the issue, saying that the Member Bibek Debroy had spoken in his personal capacity.

Debroy during the full NITI Aayog briefing before the media on Tuesday had argued that the distinction between urban and rural on taxation should go and even agricultural income above a certain threshold be taxed. However, the Finance Ministry and NITI Aayog in their separate clarifications stated that no such proposal was before the government. The Finance Ministry stated that taxing agricultural income was beyond the legislative competence of the Central government.

The NITI Aayog stated that the draft action plan has nowhere made such a recommendation.   

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