The Central Board of Direct Taxes (CBDT) has clarified that the farmers do not need PAN (Permanent Account Number) for transactions upto Rs. lakhs in a day. Farmers can sell their products upto that limit and deposit the amount in banks without mentioning the PAN number.
According to the new rule of Section 269 ST of Income Tax Act - 1961, transactions above Rs. 2 lakhs in a day in the form of cash will not be allowed.
CBDT has received several requests to clarify the applicability of the rule to farmers of the country. It has clarified that the IT rule is not applicable to farmers.
Farmers need not submit Form 60 as the PAN rule is not applicable to them. Hence farmers can make transactions in cash above Rs. 2 lakhs on any day.