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.