Agricultural Income Tax Holiday under the Assam Tea Industries Special Incentives Scheme gives eligible tea planters and manufacturers in Assam a full tax holiday on their agricultural income. The holiday has now been extended through the 2026-27 financial year, giving the tea sector continued support to shift towards more sustainable Orthodox and speciality tea production.
Assam government distributed Rs 94 crore among 486 tea gardens in March 2026 under this scheme. The package covers interest subvention, orthodox tea production subsidy, machinery cost support, and the agriculture income tax holiday. This keeps the scheme active and open for eligible tea units in the state.
Agricultural Income Tax Holiday under the Assam Tea Industries Special Incentives Scheme
Agricultural Income Tax Holiday under the Assam Tea Industries Special Incentives Scheme serves as a key support system for the local tea sector. Launched in 2020 by the Finance (Institutional Finance) Department, Government of Assam, the scheme supports long term financial stability of tea gardens. It encourages manufacturers to move from traditional Crush, Tear, Curl tea to more specialised Orthodox and speciality tea production.
Finance Department, along with the Industries and Commerce Department, manages the rollout through local banks and the District Industries and Commerce Centre. The official portal at atisis.assam.gov.in handles the online application process. An Amended Notification for 2026 has been released on the portal, confirming the extended tax holiday period.
Key Information
| Detail | Information |
|---|---|
| Scheme Name | Agricultural Income Tax Holiday under the Assam Tea Industries Special Incentives Scheme |
| Level | State |
| Beneficiary | Individual |
| Target State | Assam |
| Categories | Banking, Financial Services and Insurance, Agriculture, Rural and Environment |
| Benefit Type | Cash |
| Nodal Department | Finance Department |
| Official Website | atisis.assam.gov.in |
Benefits
Eligible tea units can get a complete agricultural income tax holiday for a period of 3 years. The benefit now covers the financial years 2022-23, 2023-24, 2024-25, and has been extended through the 2026-27 financial year as per the latest amendment. To keep this benefit active, tax returns must be filed by the specified due date. Missing the deadline can attract interest and penalties.
Along with the tax holiday, the scheme also offers an interest subvention of 3 per cent per annum on working capital loans, a subsidy of Rs 10 per kg on orthodox or speciality tea production, and a 25 per cent subsidy on the cost of plant and machinery for orthodox or speciality tea units. These incentives together help tea gardens reinvest in modernisation and higher value tea production.
Eligibility
To qualify for this incentive, the following criteria must be met:
- Applicant should be a tea plantation owner of any size.
- Applicant should run a tea manufacturing unit that produces Crush, Tear, Curl, Orthodox, or Speciality tea such as Green, Oolong, White, Yellow, or Purple tea.
- The entire plantation or manufacturing facility should be located within Assam. Units with any part of their operations outside the state are not eligible.
Application Process
STEP 1 - Visit the official portal for the Agricultural Income Tax Holiday under the Assam Tea Industries Special Incentives Scheme. Click on New User Registration to create an account by providing name, mobile number, and email. Verify the mobile number through the OTP sent and set up a secure password.
STEP 2 - Once the account is active, log in and go to the Apply for Benefits section. Fill in unit details accurately, including production capacity and location. Upload all required supporting documents as per the portal guidelines. Before submitting, double-check all the information and save the application reference number to track the status later.
STEP 3 - SMS alerts will be received regarding application progress and any approvals. Upon successful verification, the Finance Department releases the benefit directly to the registered bank account through Direct Benefit Transfer. For any technical difficulty, reach out to atisis.assam@gmail.com.
Documents
Keep the following documents ready for the application:
- Evidence of Agricultural Income Tax Return filing
- Tea Estate Registration Certificate
- Aadhaar Card
- Permanent Account Number (PAN) Card
- Business Registration Certificate
- Current Bank Account details
- Valid address proof of the unit located in Assam
References
Official Guidelines | Amendment Notification | Amended Notification 2026
FAQ's
How long can I avail of the tax holiday?
The agricultural income tax holiday is available for a total of 3 years, now extended through the 2026-27 financial year.
Which financial years are covered?
The scheme covers 2022-23, 2023-24, 2024-25, and has been extended through the 2026-27 financial year as per the latest amendment.
Is there a deadline for filing returns?
Yes, income tax returns must be filed by the official due date to remain eligible for the holiday. Missing this deadline results in interest and penalties.
Am I eligible if my tea estate is outside Assam?
No, the entire tea plantation and manufacturing unit must be located within Assam to qualify.
What if I only produce one type of tea?
The scheme supports various types including Crush, Tear, Curl, Orthodox, and Speciality teas. As long as the manufacturing criteria are met, an application can be made.