Clarification - agriculture income

[DEV KUMAR KOTHARI]

Relevant provisions: Indian Constitution, I.T.Act, I.T.Rules in relation to agricultural income. Whether, any provision which has effect of amending meaning of 'agricultural income' can be amended by simply amending Income-tax Act, 1961 or I.T.Rules 1962, in general way or it require special procedure and votings which are required in case of amendment of the provisions of Indian Constitution? As the indian Constitution adopts meaning of agricultural income as agricultural income for the purposes of income-tax Act, it is essential that the provisions of I.T.Act, I.T.Rules which have effect or may have effect of making any changes in the meaning of 'agricultural income' should be passed by following procedure as required to an amendment of the Indian Constitution and not by general procedure and general voting and majority. The changes in meaning of agricultural income in IT.Act causes effect on state governments and public at large, for that reasons also it is desirable that such amendmetns should be as per amendment of the Indian Constitutions. An amendment of the I.T.Act, and I.T. Rules which has changed meaning of 'agricultural income' but which has not been approved by followuing procedure for amendment of the Indian Constitution should be considered as invalid provision and not applivcable or effective to change the meaning of 'agricultural income'.

[Rama Krishana]

You are right certainly as long as the amendment in the constitution is required to be made. But where as the amendment is made in the IT Act or IT Rules, no interfereance of the state legislatures is required. 

AI Summary

Meaning of agricultural income: statutory amendments to tax law can redefine it without following constitutional amendment procedure. Whether redefining the scope of agricultural income for tax purposes requires constitutional amendment or may be effected by ordinary amendment of the Income-tax Act/Rules is in dispute; the query argues such changes should follow the constitutional amendment procedure because of their impact on states and taxpayers, while the reply states statutory amendments to the Income-tax Act or Rules are sufficient and do not require state legislature involvement.