Don’t hide taxable income as farm earnings, Jaitley warns Rajya Sabha
The government on Tuesday indicated that action could be taken against “prominent people” who are trying to conceal taxable income by claiming they are agricultural earnings.india Updated: Mar 15, 2016 14:21 IST
The government on Tuesday indicated that action could be taken against “prominent people” who are trying to conceal taxable income by claiming they are agricultural earnings.
“Many prominent people are doing this. Please do not say it is political victimisation if names come out afterwards,” Union finance minister Arun Jaitley announced in the Rajya Sabha.
Several opposition members, including the Janata Dal-United and Samajwadi Party, cited reports that large amounts of black money were being shown as agriculture income.
Sharad Yadav of Janata Dal-United said reports suggested that Rs 2,000 lakh crores worth of taxable income has been concealed in such a manner.
Jaitley warned that anyone abusing the provisions of the Income Tax Act could be investigated and face legal proceedings.
Under the current taxation norms, earnings derived from agricultural work are exempted from income tax.
Some members alleged that the government might be thinking of starting to tax the farm incomes henceforth.
There could be a “conspiracy of taxing agriculture income” which must be opposed, said Ram Gopal Yadav of the Samajwadi Party.
Congress member Digvijay Singh said instead of “threatening”, the finance minister should reveal names.
“He is misleading the house. Do not threaten us,” Digvijay Singh said.