Budget 2026: According to current rules, showing a PAN card and an Aadhaar card is mandatory for gold purchases exceeding ₹2 lakh. The government introduced this rule in 2016. At that time, the price of gold ranged from ₹25,000 to ₹32,000 per ten grams. However, the price of gold has now reached up to ₹1.60 lakh per tola (approximately 10 grams).
In this situation, people are questioning the ₹2 lakh limit for showing PAN and Aadhaar cards. The requirement to show PAN and Aadhaar cards for a ₹2 lakh gold purchase no longer seems justified. The central government is expected to present the financial budget on February 1, 2026. This budget may increase the minimum amount for gold purchases requiring PAN and Aadhaar cards. However, no official statement has been made yet.
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What are the rules?
Under Section 139A and Rule 114B of the Income Tax Act, if a person purchases gold or jewellery worth more than ₹2 lakh, they are required to provide their PAN card number to the jeweller. If a PAN card number is not available for any reason, then the Aadhaar card number is required.
The government implemented this rule on January 1, 2016. Rule 114B was amended in 2016. At that time, the separate limits for gold and jewellery were removed, and a general limit of ₹2 lakh was implemented. Since then, gold prices have increased significantly, but the limit for showing PAN and Aadhaar cards has not been raised. Therefore, there is a growing demand for this change.
The current problem
The Income Tax Department’s rules are now becoming a hindrance for jewellery customers. When the rule was implemented, the price of gold was between ₹25,000 and ₹32,000 per ten grams. At that time, providing PAN and Aadhaar card numbers for a ₹2 lakh purchase seemed reasonable. Now, the price of gold is approximately ₹1.60 lakh per tola.
As a result, customers are facing difficulties. Overall, the limit for showing PAN and Aadhaar numbers for gold purchases has not been increased, which has disappointed customers. The jewellery industry and associations are now also demanding an increase in this limit.
Why is the jewellery industry making this demand?
It’s worth noting that during weddings and festivals, there is a significant increase in customer activity in the jewellery industry. Sales also see a considerable boost during these times. Even small and medium-sized buyers fall under the reporting requirements. This increases the burden of additional compliance on both jewellers and customers.
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Changesare possible in the budget
Union Finance Minister Nirmala Sitharaman may increase the limit for PAN and Aadhaar card requirements in the general budget. According to Chartered Accountant Govind Sharma, the government needs to reconsider this limit. He suggests that the ₹2 lakh limit should be increased or linked to the current price of gold or inflation, so that it updates automatically over time.