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Government has no plan to impose any tax on agricultural income: Arun Jaitley
Union Finance Minister Arun Jaitley has clarified that the government is not planning to impose any tax on agricultural income.

"I have read the paragraph in NITI Ayog Report entitled 'Income tax on agriculture income'. To obviate any confusion on the subject, I categorically state that the Central Government has no plan to impose any tax on agriculture income," Jaitley said in a statement.

"As per the Constitutional Allocation of Powers, the Central Government has no jurisdiction to impose tax on agricultural income," he added.

The speculation had come after the NITI Aayog, in its three-year action plan for the country, had recommended that the tax exemption on agricultural income be reviewed. The proposal was circulated during Sunday's meeting of the Governing Council chaired by Prime Minister Narendra Modi and includes all Chief Ministers.

The NITI Aayog had reasoned that non-agricultural entities sometimes use the blanket relief on agriculture to evade taxes.

A strong case for taxing agriculture income was made by NITI Aayog member & noted economist Bibek Debroy. He had argued that taxes should be imposed on agricultural income above a certain threshold in order to expand the tax base.

"On expanding the base on the personal income tax side, other than elimination of exemptions, is to also tax rural sector, including agriculture income above certain threshold," Debroy had said at a press conference.

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