In order to encourage post-harvest value addition in agriculture, Finance Minister Arun Jaitley today proposed 100% deduction to companies registered as farmer producer firms having an annual turnover up to Rs 100 crores in respect of their profit derived from such activities for a period of five years from financial year 2018-19. 

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Making this announcement in the General Budget 2018-19, the Finance Minister said that at present, 100% deduction is allowed in respect of profit of co-operative societies which provide 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," the FM said. 

He further added, "such tax incentive will encourage “Operation Greens” mission announced earlier and it will give a boost to Sampada Yojana."