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Members of farmer producer organisations (FPOs) who manage the affairs of their bodies as directors are upset over receiving income tax notices despite the fact that their earnings are below the taxation threshold.
A major problem these directors — most of whom belong to the below poverty level — face is that they are unable to get any benefit of social welfare schemes since they are considered to be well-off.
“It is farmers who become directors of FPOs. Once they become a director, they get registered under the Companies Act, 2013. A director identification number is issued and automatically, the Income Tax gets notified,” a women-member said at a FPO conclave last week.
No social welfare benefits
CS Reddy, Founding CEO, Mahila Abhivruddhi Society (MAS), earlier known as APMAS, said once someone is seen having the capability of paying income tax, they cannot receive social welfare benefits.
Farmer-directors tend to lose a lot by this and hence, are aggrieved.
“The issue is that they are doing voluntary work and get no remuneration for being director of an FPO. On top of it, when they are issued an Income Tax notice that deprives them of social welfare schemes benefits they are bound to be upset,” he said.
In particular, these farmer-directors could be deprived of the Rythu Bandhu scheme benefits of ₹10,000 per acre every year as also the ₹6,000 through the PM Kisan Samman Nidhi.
Telangana Agriculture Minister S Nirajan Reddy, when asked, said the State will look into the issue and have it resolved. “We are not aware of this. We will look into these complaints and take it up with the concerned people,” he said.
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