The government provides exemption to the farmers of India from tax payment. However, farmers have to pay taxes under special circumstances. A lot of funds are collected in India as tax. There are also various big celebrities across India, who pay crores of rupees as taxes. Apart from these, many citizens of India also pay taxes. However, the pride of the country has to be taxed by the farmer brothers.
In India, farmers do not have to pay any tax on the income from their farming. According to the Income Tax Act, 1961, the income from agriculture is free from tax or tax. Farmers do not need to file any returns of their income in this way. However, in many circumstances, farmers may have to pay taxes on farming. For example, a farmer will have to pay tax on doing the rest of business in addition to agriculture.
Explain that apart from this, if a farmer uses the money earned from agriculture on the business, then he will have to pay taxes from agriculture on the money. The purpose of giving exemption on tax to farmers is to encourage the agriculture sector and improve their economic status.
1. If the farmer does business other than agriculture, then he will have to pay tax on income from that business. If a farmer does farming as well as animal husbandry or dairy business, then he will have to pay tax on animal husbandry or dairy business.
2 . If a farmer runs the income from agriculture on business, then he will have to pay tax on that income. If a farmer earns from selling income from farming, then he will have to pay tax on that benefit.
3. If the income from agriculture invests in other businesses, then the farmer will pay taxes on the income from that investment. If a farmer invests the income from farming in the stock market, then he will have to pay tax on the income from that investment.