Panel flags misuse of agri income for evading taxes
New Delhi, February 11
The Public Accounts Committee has in its report raised red flags regarding the misuse of agricultural income by non-agriculturists to evade taxes and launder funds, resulting in significant revenue losses annually. The report emphasises the heterogeneous nature of agriculturists, ranging from small farmers to corporate entities, urging the ministry to consider differentiating between those with solely agricultural income and those with additional non-agricultural sources.
In response, the Finance Ministry was urged to explore the introduction of separate codes for these categories to facilitate better targeting and scrutiny of cases, thus curbing tax avoidance and money laundering.
Additionally, the report recommends incentivising digital payments in the agriculture sector.
