(a) the reasons for including Animal Husbandry industry
within income tax net;
(b) whether the Government proposes to exempt Animal
Husbandry industry from income tax;
(c) if so, the details thereof and if not, the reasons
therefor; and
(d) the steps taken by the Government in this regard ?
MINISTER OF STATE IN THE MINISTRY OF FINANCE:
(SHRI S.S. PALANIMANICKAM)
(a) Under the Income-tax Act, 1961 (Act), income from all
the commercial activities is taxed except where specific exemption
or deduction is provided as an incentive. In case of Animal
Husbandry Industry there is no exemption of income however
following deductions are available:-
1. In case of co-operative societies income from fishing and
allied activities is allowed as deduction under section 80P
of the Act.
2. Any income from the business of processing, preservation
and packaging of meat and meat products, poultry, marine, and
dairy products is allowed as deduction if the business was set up
on or after 01-04-2009 at the specified rates which is 100% of
the profits for the first five assessment years and 25%
(30% in case of company) of profits for the next five assessment
years under section 80 IB (11A) of the Act.
(b) There is no such proposal.
(c) & (d). Over the years, the consistent policy of Government
has been to remove all the profit linked incentives and these are
being phased out on their sunset dates.