Prominent people concealing taxable income as agriculture earning: Govt

Many prominent people are being probed for allegedly concealing taxable income as agricultural earnings, Finance Minister Arun Jaitley said today and told the Opposition not to term it as political victimisation if their names come out. After Opposition JD-U, SP and BSP raised the issue of reports of huge amount of blackmoney being masqueraded as agriculture income to avoid paying taxes, Jaitley said if someone misuses the provisions of income tax act, they are probed by the Income Tax Department.

“Many prominent people” are said to be involved and are being probed, he said. “Please don’t say it is political victimisation if names come out after that (probe).”

He however refused to share details, despite the Opposition members seeking the names of such persons.

Agricultural income is exempt from income tax.

Charging Jaitley with misleading the House, Digvijaya Singh (Cong) asked the Finance Minister to reveal the names and “not threaten us.”

Jaitley said there was no proposal before the government to levy income tax on farm income in view of the agricultural situation in the country.

Earlier raising the issue, Sharad Yadav (JD-U) said reports suggested that Rs 2000 lakh crore of income has been concealed as agriculture earnings and sought an explanation from the government on the issue.

Mayawati (BSP) demanded a high-level probe into generation of blackmoney in the name of agriculture and strict action be taken against guilty.

She also used the occasion to slip in a demand for Bharat Ratna for her party founder Kanshi Ram on his birth anniversary today.

Ram Gopal Yadav (SP) saw a conspiracy of taxing agriculture income in reports that huge blackmoney was being hidden as agricultural income. He warned the government against taxing farm income.

Unsatisfied by Jaitley’s reply, members were up on their feet continuing to raise the matter.

Deputy Chairman P J Kurien said Yadav’s notice under rule 267 seeking suspension of business to take up the issue, has not been accepted.

“An important matter was raised by Sharad Yadav. Finance Minister has given a proper reply. If you want further discussion, give notice. That notice will be considered,” he said.