Clarification on Cash sale of agricultural produce by cultivators/agriculturist

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....e of agricultural produce by cultivators/agriculturist Representations have been received from the stakeholders regarding applicability of income-tax provision to cash sale of agricultural produce by cultivators/agriculturists to traders. 2. In this context, it is stated that the provisions of section 40A (3) of the Income-tax Act, 1961 ('the Act') provides for the disallowances of e....

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....nk account from a person in a day or in respect of a single transaction or in respect of transactions relating to an event or occasion from a person. Therefore, 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. 4. Further also the provisions relating to quoting of PAN or furnishing of Form No.60 under rule 114B....