Finance Minister Arun Jaitley said today that the government has been probing income tax cases of some 'prominent people' hiding their taxable income as agricultural earnings. However, Jaitley rushed to clarify that there is no proposal for taxing farmers – FM was speaking in Parliament during the Budget session on Tuesday. Jaitley's statement came after members expressed concern over the issue, citing a report that the Central Board of Direct Taxes (CBDT) has been inquiring into the genuineness of farm income claims exceeding Rs 1 crore made by people in their income tax (I-T) returns. (PTI/Reuters)
"Tax is not being paid and black money is being generated in the name of agriculture. Government should do something; this is a serious issue," said Janata Dal-United leader Sharad Yadav, raising the issue soon after the house convened. "In my village, several businessmen are saving tax by doing agriculture," Yadav said. (PTI)
Bahujan Samaj Party (BSP) leader Mayawati said that a high level inquiry should probe the allegations. "There should be a high-level inquiry and those who have made black money in the name of agriculture should be caught," she said. This, however, should not be used as an excuse to tax farmers, cautioned Samajwadi Party leader Ram Gopal Yadav. (PTI)
Small savings schemes interest rate: Arun Jaitley said no country can have "a system where lending rates are low but deposit rates are high. The two are interlinked". The government had on March 18 announced cut in interest rate on PPF to 8.1 per cent, on Kisan Vikas Patra (KVP) to 7.8 per cent from 8.7 per cent, on girl-child saving, Sukanya Samriddhi Account to 8.6 per cent from 9.2 per cent and senior citizen savings scheme to 8.6 per cent from 9.3 per cent with effect from April 1.
Arun Jaitley said, "If someone misuses this provision and shows a non-agricultural income as agricultural income, we will probe the individual case. I will also tell you, there are many prominent people who have done this and probe is on against them. When the probe is over and the facts are revealed, don't call it political victimisation." (Reuters)
That statement by FM Arun Jaitley irked Digvijay Singh and a few other Congress members. "Let him come out with the names of the black money holders. He has misled the country and again he is misleading the country," Digvijay Singh said. (PTI)
