Which State Government of India has recently abolished the levy of agriculture income tax within its jurisdiction?

Introduction / Context:
This question belongs to Indian economy and public finance and focuses on a specific tax policy decision taken by a state government. Agriculture income is generally exempt from central income tax, but historically a few states imposed their own agriculture income taxes. When a state government announces abolition of such a tax, it becomes a notable current affairs point that may be asked in competitive examinations, particularly those that include state specific or fiscal policy related questions.

Given Data / Assumptions:

• The subject is a state level agriculture income tax.
• The question asks which state government abolished this tax recently.
• Options are Karnataka, Rajasthan, Bihar and Assam.
• We assume the question refers to a widely reported decision covered in national news and exam preparation materials.

Concept / Approach:
The main concept is to connect agriculture income taxation with particular states that experimented with such policies. Karnataka was one of the few Indian states that historically levied agriculture income tax on certain categories like plantation crops. A major policy decision was taken to abolish this tax, which was widely reported. Therefore, the approach is to recall that Karnataka government is the state known for removing this levy, while the other listed states are not associated with such a specific reform in the same way at the time referred to by the question.

Step-by-Step Solution:
Step 1: Read the question carefully and note that it focuses on agriculture income tax, not general sales tax or value added tax. Step 2: Consider the states in the options and recall which of them have historically taxed agriculture income. Step 3: Remember that Karnataka is frequently mentioned in exam oriented materials as a state that abolished agriculture income tax. Step 4: Recognise that Rajasthan, Bihar and Assam have been in news for other policy issues but are not as prominently linked with this particular tax abolition. Step 5: Therefore, identify Karnataka as the correct choice.

Verification / Alternative check:
As an alternative check, recall that agriculture income is generally exempt from central income tax, but plantation rich states such as Karnataka previously levied agriculture income tax on crops like coffee and tea. The decision to abolish this tax was significant because it simplified taxation and was highlighted in analyses of state budgets. No similar headlines about Rajasthan, Bihar or Assam came into exam preparation material for this specific tax. This reinforces that Karnataka is the correct answer for this question.

Why Other Options Are Wrong:
Rajasthan: Known for various reforms in water management and other sectors, but not for the highlighted abolition of agriculture income tax in the way referred to by this question.
Bihar: Associated with several development schemes and governance initiatives, but not widely reported for removing a state level agriculture income tax at the relevant time.
Assam: The option spelled Asssam is likely a typographical error and Assam has not been the main state linked in exam materials with agriculture income tax abolition in this context.

Common Pitfalls:
Students often get confused by similar sounding news items, such as changes in agricultural marketing laws or subsidies, and may incorrectly associate them with this question. Another mistake is to guess based on geographical stereotypes, assuming that any state with substantial agriculture might have been involved. The reliable approach is to create brief notes on major fiscal decisions of states, such as Karnataka abolishing agriculture income tax, and review them regularly. This strengthens memory and reduces guesswork in current affairs based questions.

Final Answer:
The State Government that has abolished agriculture income tax is Karnataka.