|THE ASSAM AGRICULTURAL INCOME TAX ACT, 1939.
Income originating from the agricultural output of land may be referred
to as the scope and coverage of this Act. Since tea leaf is an
agricultural produce and has marketability leading to derivation of
income by the growers, such income is taxable under the Agricultural
Income Tax Act. However, production of green tea leaf is only one of
the components of the whole process of plantation, manufacture and sale
of tea and only a part of the income derived from such cultivation,
manufacture and sale of tea is attributable to agricultural income.
Computation of the composite income and apportionment of this income
for the income tax and agricultural income tax is done by the Central
Income Tax Authority in conformity with the provision of the
Constitution of India. At present the ratio for apportionment of such
composite income is fixed at 60 : 40 for the purpose of agricultural
income tax and income tax respectively. The existing rate of
agricultural income tax under this Act is 45% of the agricultural
income at the highest slab.