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Cash payment to farmer

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26 May 2016 One trader purchased wheat from farmers in cash because the farmer says that they have no bank account. Some time the payment may increase to 2.00 Lac. Please advise whether the cash payment made to farmers is exempt under Income Tax. One more thing whether Rule 114 is applicable in this case.

26 May 2016 you can pay cash to farmer, there is exemption under income tax act.

26 May 2016 Thanks sir. what about Form 60 and 61/61A




26 May 2016 form 60- for person not having PAN.
61 for agriculture income person



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