CAUSE
One question. One truth.
“Why is agricultural income tax-free in India?”
Under the Constitution of India, state governments have the exclusive power to tax agricultural income, while the Central Government is barred from doing so. This is detailed in Entry of List II of the Seventh Schedule and Section 10(1) of the Income Tax Act.
Medium confidenceStructural
CURRENT STATE
Agricultural income is exempt from central income tax, which supports farmers. State taxation varies due to political and enforcement issues, leading to inconsistent state-level taxation despite widespread central exemption.
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