Archive · 8 Aug 2025
PRICE CEO: Consider Taxing Wealthy Farmers' Income
Imagine some farmers are making a lot of money, like ₹25 lakh, and some of it isn't even from farming.
Right now, the government doesn't tax the money they make from farming.
Rajesh Shukla, who studies how people spend money, thinks maybe those rich farmers should pay some taxes.
He says it's fair because they also make money from things other than farming.
Rich farmers own things like cars and get money from government programs.
But normal farmers, who don't make as much money, should probably not pay tax on their farming income.
It's about making sure the rules are fair for everyone.
Rajesh Shukla suggests taxing agricultural income for high-earning farmers.
He notes some farmers earn over ₹15 lakh, with significant non-agricultural income.
Agricultural income is currently exempt from income tax in India.
Wealthy farmers, making up 8% of the population, control 28% of sector income.
Many wealthy farmers also have investments beyond farming, such as vehicles.
- Who
- Rajesh Shukla, MD and CEO of PRICE.
- What
- Discussion about taxing agricultural income in India.
- When
- During the Business Today's India@100 Summit.
- Where
- India
- Why
- To potentially increase government revenue from high-earning farmers.
Current Tax Law
Proposed Tax Change
Taxation Policy
Current Tax Law
Agricultural income is exempt from income tax.
Proposed Tax Change
Tax agricultural income reasonably, especially for high earners.
- Main Subject
- Agricultural Income Tax
- Proponent
- Rajesh Shukla (PRICE)
- Current Status
- Agricultural income generally exempt from tax
- Proposed Threshold
- Farmers earning over ₹15 lakh annually
- Wealthy Farmer Share
- 8% of farmers control 28% of sector income
- Wealthy Farmer Investments
- Cars, two-wheelers, etc.
- Wealthy Farmer Location
- Andhra Pradesh, Punjab, Kerala, etc.