Why some rich farmers in India pay no income tax

Farm income remains tax‑exempt under Section 10(1) of the Income Tax Act—originally to protect small farmers—but end up benefiting wealthy farmers disproportionately. Affluent farmers constitute a very small percentage yet control a disproportionate share of agricultural income Source Links

Authorities are increasingly scrutinizing high-earning farmers (e.g. those declaring >₹10 lakh as farm income) to address evasion risks and revenue loss Source Links

Salaried middle class bears the lion’s share of tax burden

The salaried middle class now contributes more in direct taxes than corporate India, even though just a small fraction of workers pay taxes—that imbalance is prompting growing resentment. Source Links

Experts observe “one salaried taxpayer is carrying the weight of 100 others”—while agricultural income and large political donations go untaxed. Source Links

Political parties and wealthy donors benefit from tax exemptions

Donations to political parties are generally exempt from income tax under current laws, and parties themselves enjoy exemption—raising concerns about lack of accountability and inequity. Source Links

In a high-profile case, the Income Tax Tribunal recently ruled that the Congress party must pay tax on ₹199 crore donations that failed to meet exemption criteria—showing enforcement is rare but possible. Source Links

Reservation and sub-categorization debates in India

The Supreme Court's recent decision allows sub-classification within SC/ST for reservation purposes, overturning earlier rulings and sparking debate over who truly benefits within reserved groups. Source Links

Critics argue that while reservation aims to uplift historically marginalized groups, the system is imperfectly implemented—sometimes benefiting relatively better-off individuals within reserved groups (the so-called "creamy layer"). Source Links