IMC seeks taxing rich farmers

The Indian Merchants' Chamber (IMC) has urged the prime minister to tax rich farmers in the country.

Rajesh Kapadia, president, IMC, said in the chamber's pre-budget memorandum, "With an exemption of Rs 30,000 along with other general exemptions available to all the assessees, the small and mid-level farmers would not have to pay any tax at all. An amendment to Sec 10 (1) could plug an existing loophole wherein non-agriculturists convert their unaccounted money into accounted money by claiming higher than real agricultural income."

Kapadia also pleaded that charitable trusts should be allowed to accumulate their incomes for a period of 10 years, as it would allow them to "accumulate a reasonable surplus as falling interest rates have taken a toll on their income."

Pleading on behalf of senior citizens, he said, high life expectancy and increased expenses are creating problems for senior citizens with fixed income.

He suggested that medical expenses actually incurred, together with the premium paid for medical insurance by them, and /or premium paid for taking accident policy, should be allowed as deductions for tax purposes.