Will agricultural income be taxed?
Agricultural income would no longer be outside the tax net. That is the suggestion of the Parliamentary Standing Committee on Finance.
In its report to the parliament, the committee says: With reference to persons earning agricultural and non-agricultural incomes, perhaps the time has come for the Government to seriously consider fixing, in consultation with state governments, a threshold limit beyond which the income of such persons from agricultural sources could be brought under the tax net.
While recommending that all services, barring the essential and the basic ones, be brought under the tax net in one go, the panel has suggested creation of a separate law for service tax, with clear definition of components, so as to avoid possible disputes between the Union and state tax authorities and prevent double taxation under state value added tax and service tax regimes.
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