The British administration officially began taxing income in 1860 as part of a formal drive to increase revenue. In 1818, 1868 to 1863 and 1869 to 1873, they levied a tax on farmers when their annual revenue exceeded 600 rupees a year. By 1935, the power to determine agriculture tax went to princely states and provinces. Meanwhile, we claimed independence, kicked the British out and let states decide how to deal with agricultural income. And a few states did try taxing this income.
In today’s episode for 2nd February 2023, we explain the history of taxing agricultural income and why it’s such a contentious issue.