Agricultural income-tax is assigned to the State Governments by

Agricultural income-tax is explicitly assigned to State Governments by the Constitution through the Seventh Schedule’s State List: Entry 46 lists “Taxes on agricultural income,” thereby vesting both legislative and fiscal competence over this tax with the States [1]. The constitutional allocation of tax subjects and the accompanying discussion of tax revenue distribution in constitutional commentaries further confirm that such assignments are constitutional provisions rather than functions of bodies like the Finance Commission, National Development Council or Inter‑State Council [2]. Hence, agricultural income-tax is a constitutional assignment to the States under the State List (Seventh Schedule) [2].

Sources

1. [1] Indian Polity, M. Laxmikanth(7th ed.) > Chapter 92: World Constitutions > STATE LIST (LIST-II) > p. 711
2. [2] Introduction to the Constitution of India, D. D. Basu (26th ed.). > Chapter 35: TABLES > T > p. 574