For getting agriculture gold loan up to Rs.2 lakhs from Banks, there is no requirement to prove that the borrower is an agriculturist. Anybody can avail this loan for which two percent subsidy is given by the central government on the belief that the borrower is an agriculturist and the loan is utilised for agricultural operations.
Majority of such loans are obtained by non agriculturists and hence the benefit meant for agriculturists are enjoyed by non-agriculturists. Now such loans are waived by Government. If the returned income of such account holders are verified it will come to light that how many non-agriculturist millionaires are enjoying this so called waiver for the poor.
Another issue arises in taxation angle. Whether the interest and principal waived will be taxed as Income from Other sources or the interest charged and claimed already in previous years and now waived will be treated as Income from Business and the principal returned will be treated as Income from Other Sources?
The fact remains the same. The benefit doesn’t reach the deserved agriculturists and our tax payes’ money is reaped by unscrupulous mass.
Author Bio
