In order to encourage professionalism in post-harvest value addition in agriculture, the Union Finance Minister Arun Jaitley proposed to allow 100 per cent deduction to companies registered as Farmer Producer Companies and having 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. This was announced by the Finance Minister Arun Jaitley while presenting the Union Budget 2018-19 in the Parliament today.
The Finance Minister mentioned that at present, 100 per cent 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. Thus, Jaitley said, such tax incentive will encourage “Operation Greens” mission announced earlier and it will give a boost to flagship food processing scheme, Pradhan Mantri Krishi Sampada Yojana.