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India: Agricultural Taxation
Country Study > Chapter 7 > Agriculture > Agricultural Taxation


Agricultural property and some agricultural income were being taxed in the early 1990s, but the revenue from these taxes was negligible. In the early 1950s, however, land revenue agricultural property taxes were a significant form of government income, providing just under 10 percent of the tax revenue of the central, state, and union territory governments. At the end of the 1980s, that proportion was less than 1 percent because land revenue had been fixed. For instance, land revenue was an average of Rs28 per hectare in Kerala and Rs23 per hectare in Uttar Pradesh, the two states with the highest assessment rates. The national average was Rs16.50 per hectare. Agricultural property also was subject to stamp duties and registration fees. (All property transactions have to be made on official, stamped forms, and registration fees have to be paid to register transactions.) No data were available in early 1993 on the proportion of these fees that came from the agricultural sector, but a taxation inquiry committee put it at approximately 20 percent. Between 1950 and 1990, only about 1.5 percent of the total taxes collected by the central, state, and union territory governments came from the agricultural sector. Overall, the impact of tax on agricultural property was negligible but was a likely target for economic reform in the mid-1990s.

Since the 1950s, agricultural income tax has been collected as a federal tax, but it has been levied only on income from plantations. All other agricultural income has been exempt from tax. The total collection from this tax was less than 1 percent of the total taxes collected by the central, state, and union territory governments in FY 1950; in the late 1980s, it had dropped below 0.3 percent.

Data as of September 1995

Last Updated: September 1995

Editor's Note: Country Studies included here were published between 1988 and 1998. The Country study for India was first published in 1995. Where available, the data has been updated through 2008. The date at the bottom of each section will indicate the time period of the data. Information on some countries may no longer be up to date. See the "Research Completed" date at the beginning of each study on the Title Page or the "Data as of" date at the end of each section of text. This information is included due to its comprehensiveness and for historical purposes.

Note that current information from the CIA World Factbook, U.S. Department of State Background Notes, Australia's Department of Foreign Affairs and Trade Country Briefs, the UK's Foreign and Commonwealth Office's Country Profiles, and the World Bank can be found on

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