The Income Tax Department has clarified that the cash sales of agricultural produce by a cultivator to a trader for less than 2 lakh rupees will not attract tax under the Income Tax Act. <br/><br/>A circular issued by the Department said, the cultivator and the trader will also not have to provide their Permanent Account Number or furnish Form 60.<br/><br/>The clarification came following representations from stakeholders about applicability of income tax provision to cash sale of farm produce by farmers to traders.