ABSTRACT
Tax exemption on agricultural income in India has been a subject of significant debate and discussion due to its implications for the country’s economy, fiscal policy, and social welfare. This study provides an overview of the concept of agricultural income tax exemption, its historical context, and the rationale behind its implementation.
Tax evasion related to agricultural income in India presents a multifaceted socio-legal challenge that intersects with issues of economic development, governance, and social equity. Despite the exemption of agricultural income from taxation, concerns persist regarding widespread tax evasion practices in the agricultural sector. This paper explores the socio-legal dimensions of tax evasion in agricultural income, examining its underlying causes, mechanisms, and consequences. It analyzes the legal framework governing agricultural taxation in India and identifies loopholes and enforcement challenges that facilitate tax evasion. Additionally, the paper investigates the socio-economic implications of agricultural income tax evasion, including its impact on government revenue, income inequality, and rural development. By synthesizing legal analysis, empirical research, and socio-economic perspectives, this paper aims to deepen understanding of the socio-legal dynamics of agricultural income tax evasion in India and provide insights for policy interventions aimed at addressing this complex issue.
Keywords: Agriculture Income, Tax Exemption, Tax Evasion