Nov 06, 2017
The revenue department today said farmers do not need to quote PAN for cash sale of their produce up to Rs 2 lakh a day.
The Central Board of Direct Taxes (CBDT) said in response to representations from stakeholders regarding the applicability of provisions of Income-tax Act, 1961 to cash sale of agricultural produce by the cultivators/ agriculturists.
The newly inserted section 269ST in the Income Tax Act bans such cash dealings on a single day, in respect of a single transaction or transactions relating to one event or occasion from an individual.
The provision implies that any cash sale of an amount of Rs 2 lakh or more by a cultivator of agricultural produce is prohibited under section 269ST of the Act.
After looking into the representations, the CBDT clarified that cash sale of the agricultural produce by its cultivator to the trader for an amount less than Rs 2 lakh will not attract prohibition under section 269ST in the case of the cultivator.
Source: The Economic Times