Answer how your trade runs. You get kachha or pakka, whether you need a tax audit, whether presumptive filing is open to you, and what to say about the big figure in your AIS.
The rule. A buyer whose turnover was over ₹10 crore last year deducts 0.1% TDS on purchases above ₹50 lakh from one seller. A CBDT circular of 2021 says it does not apply where the seller's entire income is exempt.
Reading one. A farmer selling his own produce has only exempt agricultural income from it, so purchases routed through a kachha arhtiya need no TDS.
Reading two. The circular's exemption is for a person whose entire income is exempt, and the agent's name is on the sale, so cautious buyers deduct on the gross.
If reading two is right and you did not deduct. Interest of 1% a month from when it was deductible, and 30% of the purchase disallowed only if you claim it as an expense. This page does not pick a reading.
Cash withdrawals. The exemption from TDS on cash withdrawals for APMC commission agents continues under the new Act.
Your status
KACHHAIn AIS feedback, choose the option that says this is not your income or turnover, and paste the sentence. Use the same sentence in reply to a defective-return notice.
This is the sample. Enter your client's trade, then print.