Madikeri: The office of the Karnataka Agricultural Income Tax (KAIT) here may be wound up soon as it is turning out be redundant in the wake of amendments made to the KAIT Act of 1957, exempting individuals irrespective of coffee holding from payment of tax with effective from April 1, 2006.

Section 66 of the KAIT Act relating to composition of tax (There were different tax payment slabs for over 50 acres holdings) states that only firms and companies need to pay KAIT after the amendments and not individuals. However, the percentage of KAIT has been reduced with regard to firms and companies. According to the amendments, tax for firms has been reduced from 40 to 30 per cent and that of companies revised to 35 per cent. The reduced rates will come into force for 2005-06.

By omission of Part I under amendment to Section 66 of the KAIT, all individuals are exempted from payment of KAIT irrespective of holdings, according to information received on amendments from the office of the Commissioner of Commercial Taxes. By amendment to Part II, tax payable by firms has been reduced from 40 per cent to 30. And by substitution of Part III, tax payable by companies has been revised to 35 per cent.

The exemption for individual growers from payment is being hailed as a progressive step. Following this, the workload of the KAIT office here has reduced to a great extent, while it has benefited many coffee growers in the district and elsewhere in the State. The office here dealt with KAIT only with regard to holdings from 50 acres and not exceeding 100 acres. Cases above 100 acres were referred to Hassan district.

Officials used to camp in Madikeri periodically to deal with KAIT concerning holdings above 100 acres.

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