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.