Justification of Tax Base of Agricultural Income

Agricultural income is taxable on the basis of gross value and net value. Both have their merits and de-merits. Despite the complex nature of agricultural sector and social and political impediments, evolving taxation policy is complicated one as it is directly related to the problem of fiscal planning. In order to solve the problem it is essential to determine the basis of agricultural tax policy which will solve the problem for taxing the agriculturist so that the objectives of economic growth may be achieved.