Farmer-directors of FPOs upset over I.T. notice

Members of Farm Producer Organizations (FPOs) who run the affairs of their bodies as managers are annoyed to receive income tax notices despite the fact that their earnings are below the tax threshold.

A major problem faced by these managers – most of them belong to a lower level of poverty – is that they are unable to obtain any benefit from social welfare programs because they are considered to be well-to-do.

“Farmers are the ones who become directors of FPOs. Once they become directors, they are registered under the Companies Act 2013. A director identification number is issued and income tax notified automatically,” a female member said at a closed meeting of the FPO last week.

There are no welfare benefits

CS Reddy, founding CEO of the Mahila Abhivruddhi Society (MAS), formerly known as APMAS, said that once someone is seen as having the ability to pay income tax, they cannot get welfare benefits.

Manager farmers tend to lose a lot because of this, and are therefore aggrieved.

“The problem is that they do volunteer work and don’t get paid for being an FPO. Moreover, when they are issued an income tax notice that denies them the benefits of welfare programs, they are bound to get upset.”

In particular, these Farmer-Directors can be deprived of Rythu Bandhu Scheme benefits of Rs 10,000 per acre every year as well as the sum of Rs 6,000 through Chief Minister Kisan Saman Nidhi.

When asked the Minister of Agriculture of Telangana, S. Narajan Reddy, said the state will look into the issue and solve it. “We are not aware of this. We will look into these complaints and deal with those concerned,” he said.