Assam Exempts Small Farmers from Agricultural Income Tax Up to ₹10 Lakh

Guwahati, August 11: Assam Chief Minister Himanta Biswa Sarma announced on Tuesday that the state government will reintroduce agricultural income tax for large agricultural earners. However, small farmers and tea producers earning up to ₹10 lakh annually will be completely exempt from this tax.

Speaking to reporters in Guwahati, Sarma explained that the government has decided to end the agricultural income tax exemption that has been in place for large taxpayers over the past six years. The revenue generated from this tax will be utilized for the welfare and development of tea garden communities.

The Chief Minister clarified that this decision will not impose any additional burden on small tea producers and farmers. He stated, “Small tea producers earning up to ₹10 lakh annually will not have to pay agricultural income tax.”

He highlighted that this exemption will provide relief to small-scale tea producers. The Assam budget for 2026-27 proposed increasing the agricultural income tax exemption limit for small tea producers from ₹2.5 lakh to ₹10 lakh annually. Additionally, the reintroduction of agricultural income tax for large taxpayers will take effect from April 1, 2026.

Sarma noted that this differentiation is essential as agricultural income can vary significantly based on production, farm size, market prices, and expenses.

According to the government’s policy, the aim of the tax exemption is to ensure that small tea producers are not adversely affected. Meanwhile, larger agricultural and tea production businesses are expected to contribute to the state’s revenue.

The Chief Minister emphasized that the government’s goal is not to place an additional burden on ordinary farmers. He mentioned that the income generated from this tax will be directed towards the welfare of tea garden communities, social schemes, and development projects.

This decision comes at a time when the Assam government is working to strengthen the tea industry and expand welfare schemes for tea garden workers and their communities.

The state budget also proposed increasing the production subsidy for orthodox and specialty teas from ₹10 to ₹15 per kilogram. Furthermore, plans are in place to promote premium tea varieties like Matcha.