Farmer-Directors of FPOs Outraged by IT Notice

Members of farmer producer organizations (FPOs) who serve as directors are expressing their dissatisfaction with receiving income tax notices, despite their earnings being below the taxation threshold.

This issue is particularly problematic for these directors, many of whom belong to the below poverty level, as they are unable to benefit from social welfare schemes due to being considered financially well-off.

When farmers become directors of FPOs, they are registered under the Companies Act, 2013, and are issued a director identification number, which automatically notifies the Income Tax department.

However, this triggers income tax notices for these individuals, even though they receive no remuneration for their voluntary work as FPO directors. Consequently, they are unable to access social welfare benefits, causing significant distress.

One specific concern is that these farmer-directors may lose out on benefits from the Rythu Bandhu scheme, which provides ₹10,000 per acre annually, as well as ₹6,000 through the PM Kisan Samman Nidhi scheme.

In response to these grievances, Telangana Agriculture Minister S Niranjan Reddy has stated that the state government will investigate the issue and work towards a resolution. He expressed unawareness of the situation but assured that the complaints will be addressed by engaging with the relevant authorities.