Income Tax Rules: How much is the discount for buying gold without PAN-Aadhaar card, know the income tax rules..
Gold buying limit - The month of Lagan is going on and at this time gold is being bought heavily in the market. If you are also planning to buy gold jewelry, then today we are going to tell you some important things in this article. Just as the Income Tax Department has made rules regarding cash transactions. Similarly, rules have also been made for purchasing gold through cash payment. If you are buying gold in cash payments more than the limit, then you have to provide some important documents. Most of the people are not aware of the rules of income tax and they get into big trouble. It is very important for gold buyers to know how much gold they can buy without a PAN card and Aadhar card – let us know in detail-
Government tightened rules
The government has tightened the rules for buying gold with cash by bringing the gems and jewelery sector under the Prevention of Money Laundering Act (PMLA), 2002. The government issued a notification in this regard on 28 December 2020.
Jewelers have been made reporting entities under the PML Act, requiring them to comply with KYC norms (i.e., asking for PAN or Aadhaar of the buyer for cash transactions above specified limits) as well as large value cash The above transaction i.e. Rs 10 lakh will have to be reported to the government.
In recent years the government has also tightened the rules related to cash transactions under the Income Tax Act, 1961. This includes TDS on cash withdrawals from bank accounts beyond specified limits, the maximum amount of cash transactions that can be made between two individuals in a single day, etc.
So, how much gold can one buy in cash without necessarily presenting PAN or Aadhaar at the time of the transaction? Also, what is the maximum limit on cash transactions as per income tax laws?
How many transactions can be done in cash?
Section 269ST of the Income Tax Act prohibits cash transactions aggregating to more than Rs 2 lakh from a person in a day. Thus, if you buy gold jewelery worth more than Rs 2 lakh in cash in a single day, you will be violating the income tax law.
The recipient of cash in such a transaction will be liable to pay a penalty on the amount transacted in cash as per Section 271D of the Income Tax Act. PAN/Aadhaar is mandatory for purchasing gold jewelery worth more than Rs 2 lakh.
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