Want to purchase gold in bulk? If the answer is yes, then this article is important for you. There are some certain rules everyone who wants to buy gold, has to obey. Otherwise you may have to face trouble. If you purchase gold worth Rs 2 lakh or more in cash in a single day, you must show your PAN or Aadhaar card. The Income Tax Act has tightened the rules for this.
What is the rule
It should be noted that on December 28, 2020, a separate limit was introduced for purchasing gold. Previously, people had to provide a PAN or Aadhaar card to purchase gold worth Rs 10 lakh or more in cash. However, the Income Tax Department has now tightened its rules and reduced the limit from Rs 10 lakh to Rs 2 lakh.
Experts have also offered their opinions on the new Income Tax rules. They say that according to the law, you can buy gold with cash for any amount. There are no restrictions on this. However, you will now need to provide your PAN or Aadhaar card for two or more cash purchases. However, there is no limit on this. For example, if you purchase gold worth Rs 5 lakh or more, you will simply need to provide your card.
What will happen if you violates the rule
If you’re caught violating the rules, the Income Tax Department can impose a fine. For example, if a jeweler doesn’t accept Aadhaar or PAN cards and sells gold worth 2 lakh rupees or more in cash, they will be fined.
It’s worth noting that you can buy gold without a PAN or Aadhaar card. For example, if you purchase gold worth between Rs 200 and Rs 2 lakh, you can purchase it without providing a PAN or Aadhaar card.