Which one of the following state is the first state to impose Agricultural Income Tax in India?

Correct option is D

The correct answer is (d) Bihar.
Explanation:
· Bihar was the first state in India to introduce Agricultural Income Tax in 1938. This tax was levied on the income generated from agricultural activities, particularly targeting large landowners and estates.
Important Key Points:
· The introduction of agricultural income tax in Bihar was part of a broader effort to reform land revenue systems and increase state revenue.
· The tax was designed to target the wealthy landowning classes, who benefited significantly from agricultural production but contributed little to the state's revenue.
· The implementation of agricultural income tax faced significant resistance from landlords and political challenges, leading to its limited success.
· Despite the initial introduction in Bihar, agricultural income in India remains largely exempt from taxation, with only certain states attempting to levy such a tax on large holdings.
· The issue of agricultural income tax continues to be a topic of debate in India, particularly regarding its potential impact on farmers and the agricultural economy.
· Bihar's pioneering role in introducing this tax reflects the state's historical significance in land reforms and revenue policies.
Knowledge Booster:
· Madhya Pradesh: Known for its large agricultural sector, but not the first to impose agricultural income tax.
· Maharashtra: Another major agricultural state, but the tax was first introduced in Bihar.
· West Bengal: Known for its land reforms, particularly the abolition of zamindari, but Bihar led in agricultural income taxation.