1. #1
    Unregistered

    Is profit earned by the farmer from his farm products are also taxable?

    My father is a farmer and I am doing my B. Pharma in Mumbai. We stay in small village of sangli. My father gets lots of profit from these farm products. I have heard about this Income tax payment. Daddy has never paid income tax for his farm products. Is he not supposed to pay that? We donít know much about it and we donít want to take much risk. Are Farm products exempted from tax? Or Are they taxable and if yes what is the percentage of tax payment? Kindly guide us in this case.

  2. #2
    shivam Array
    Join Date
    Jul 2012
    Posts
    227

    Re: Is profit earned by the farmer from his farm products are also taxable?

    Yes but in some cases only. Federal tax policies not only influence the financial well-being of farm families but also can have important effects on the number and size of farms, their organizational structure, and their use of land, labor, and capital. The most significant Federal taxes paid by farmers are income, social security, self-employment, and estate taxes. Government provide many tax redemption policy on the products of poor farmers.

  3. #3
    Arjun Array
    Join Date
    Jul 2012
    Location
    turaaa
    Posts
    1,729

    Re: Is profit earned by the farmer from his farm products are also taxable?

    Dear, asker no farmers did not need to pay the tax for the products which they reap from feild. But they have to pay the revenue for their feild .On the other hand they are also eligible to pay for special purpose it may include :-1. The land which is used for agricultre purpose2. For business purpose like taking contract of growing crops, paddy etc3. For planting trees etc these are all taxable income from argriculture for more detail pls find the attachment below --
    Attached Files

  4. #4
    anupsahu Array
    Join Date
    Apr 2013
    Posts
    106

    Re: Is profit earned by the farmer from his farm products are also taxable?

    Dear,

    There is no tax on the farmers. yes every year they have to pay revenue for their fields which is also very less 10rs per acre.
    They are also eligiable for Kishan credit card and other loan benefit at less intesrest rates.

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