If a dealer purchases agriculture produce from farmers and sells in parts to end customers, in this case if he pays lumpsum payment to farmers, then will this cash payment be allowed under income tax provisions?
If yes , is there any limit?
Also will any declaration be required from farmers that he is a farmer and eligible to receive cash if allowed to farmers?
01 December 2021
Read the proviso in act ..... "Provided further that the provisions of this section shall not apply to any loan or deposit or specified sum, where the person from whom the loan or deposit or specified sum is taken or accepted and the person by whom the loan or deposit or specified sum is taken or accepted, are both having agricultural income and neither of them has any income chargeable to tax under this Act." Thus limit should not exceed Rs. 20,000/-
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