Towards Sustainable Taxation: Bridging Fiscal Inequity And Environmental Responsibility In Indian Agriculture

<p>This research critically examines the taxation of agricultural income in India through the lenses of fiscal equity, economic efficiency, and environmental responsibility. Although agricultural income has historically been tax-exempt to support socio-economic stability and food security, the sector’s economic landscape has transformed significantly. The paper highlights how exempting high-income farmers creates distortions in both vertical and horizontal equity, encourages tax evasion, and fosters environmental externalities such as land misuse and unsustainable agricultural expansion. Drawing upon empirical evidence, policy analysis, and international comparisons, the study proposes sustainable taxation reforms to balance fiscal responsibility with environmental stewardship.</p>