Tax incentive for promoting post-harvest activities of agriculture

Jaitley said that such tax incentive will encourage “Operation Greens” mission announced earlier and it will give a boost to Sampada Yojana.

Feb 01, 2018 09:02 IST India Infoline News Service

In order to encourage professionalism in post-harvest value addition in agriculture, FM Arun Jaitley proposed to allow 100% deduction to companies registered as Farmer Producer Companies and having annual turnover up to Rs100cr in respect of their profit derived from such activities for a period of five years from financial year 2018-19.

This was announced by the Finance Minister Arun Jaitley while presenting the General Budget 2018-19 in Parliament today.

The Finance Minister mentioned that at present, 100% deduction is allowed in respect of profit of co-operative societies, which provides assistance to its members engaged in primary agricultural activities.

Over the last few years, a number of Farmer Producer Companies have been set-up along the lines of co-operative societies which also provide similar assistance to their members.

Thus, Jaitley said, such tax incentive will encourage “Operation Greens” mission announced earlier and it will give a boost to Sampada Yojana.

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