By seeking more details about presently tax-free agricultural income in newly introduced Income-Tax-Return ITR forms like name of district with PIN-code, area of agricultural land and irrigation-details etc., Central Board of Direct Taxes CBDT has indicated confession about large-scale misuse of tax-free agricultural-income by ultra-rich persons including politicians and celebrities in all fields including from film-industry and leading sports-persons.
But even providing such details as sought in newly introduced ITR forms, misuse of tax-free provision of agricultural income by ultra-rich non-farmers cannot be stopped. These persons will declare their lavish farm-houses as agricultural land even though these farm-houses are in fact used as lavish resorts for week-ends and holding parties. Booster-pumps installed to fill swimming-pools in farm-houses will be declared as means of irrigation.
Only some basic amount should be exempted as tax-free agricultural income so that only really deserving small farmers may be kept out of Income Tax provisions. A study can be made for determining such tax-free limit for agricultural income. Income Tax cases of earlier years for ultra-rich persons having declared huge agricultural income should be re-opened for exposing such tax-evaders and recovery of tax-evaded in name of agricultural income.
SUBHASH CHANDRA AGRAWAL