Gold Purchase Limit: You can buy gold through cash only up to a certain limit. If you make purchases above the prescribed limit, you will have to submit your documents.
Gold Purchase Limit: If you are thinking that you can buy as much gold as you want through cash, then it is not so. Today we are going to tell you how much gold can a person buy legally without ID proof/PAN card? Also, is there any limit on the quantity of gold that can be purchased with cash even after providing PAN card?
Money laundering rules are strict
First of all, know what rules the government has made for buying gold through cash. The government has made rules governing the purchase of gold with cash under the Prevention of Money Laundering Act (PMLA), 2002. For this, the government had also issued a notice on December 28, 2020.
Under this Act, if a customer buys gold worth Rs 10 lakh or more in cash, then the jewelers will have to immediately inform the authorities by taking the KYC of that customer i.e. his PAN or Aadhar card.
What do income tax rules say?
Income tax laws do not permit cash transactions beyond a specified limit. Under Section 269ST of the Income Tax Act, 1961, a person cannot make cash transactions totaling more than Rs 2 lakh in a day, whether the person buys gold worth Rs 2 lakh at one go or a few thousand. The overall thing is that a person cannot buy gold worth more than Rs 2 lakh in cash in a day.
If a person buys gold jewelery worth more than Rs 2 lakh in cash in a single day, it will be a violation of the Income Tax Act. The person taking cash in such transactions will be liable to pay penalty on the amount transacted in cash as per Section 271D of the Income Tax Act.
Will PAN/Aadhaar card be required on purchase of gold above Rs 2 lakh?
If you want to buy gold above Rs 2 lakh then it is mandatory for you to provide PAN or Aadhar card. PAN details are mandatory for gold purchases for transactions worth Rs 2 lakh and above under Rule 114B of the Income Tax Rules, 1962.
Apart from this, PMLA rules also make PAN or Aadhaar mandatory for transactions exceeding certain specified limits.
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