ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Income TaxSubscribe to Income Tax

Nine Years of Turmoil in Taxation

In 2012, the finance ministry of the Government of India amended the Income Tax Act to tax capital gains from indirect corporate transactions. This law was applied retrospectively, permitting the finance ministry to tax companies for similar transactions in the previous half a century and creating consternation among foreign investors. The ministry decided to dispense with this in August 2021. Despite the altered legal position that this law will apply prospectively instead of retrospectively, the woes of the ministry are not over.

Tax on Agricultural Income

A 2019 Comptroller and Auditor General report has brought out glaring irregularities in the exemptions given to agricultural income for income tax purposes. Exempting large income on agriculture from taxation not only makes the agricultural sector a conduit for money laundering and concealment of black money, but also holds back the much-needed modernisation and reform of the sector. Although everyone agrees on the desirability of taxing agricultural income, successive governments have shied away from it for electoral reasons.
Back to Top