Question

Agricultural taxation in India is difficult because of which of the following reasons?

• A. Scattered nature of land holdings
• B. Seasonality of production
• C. The fact that agriculture is not taxed anywhere in the world
• D. Increasing overhead cost of tax collection and the lack of political will

Answer 1

The correct option is D Increasing overhead cost of tax collection and the lack of political will

Lack of political will and increasing overhead cost of tax collection are the basic hindrances in the way of agriculture taxation in India.