There are some important rules regarding buying and keeping gold, if violated, you can get into big trouble and come under the radar of tax authorities. Let us know about it in detail.
If you are going to buy gold on Diwali, then be a little careful. On Diwali, we buy gold as an auspicious sign, on top of that, wedding season is going on, hence a large number of jewelery will be purchased, but in such a situation, income tax and other government rules should also be known. Actually, there are some important rules regarding buying and keeping gold, if violated, you can get into big trouble and can come in the eyes of the tax authority.
Is any document required?
When you go to buy gold, you may be asked for PAN card or similar KYC document. It has been made mandatory to show PAN card for some transactions in the country, so that the use of black money can be stopped. If you buy gold worth Rs 2 lakh or above then you will have to show PAN. There is this rule in the country under Section 114B of the Income Tax Rules. Before January 1, 2016, there was a provision to show PAN on gold purchases above Rs 5 lakh.
How much gold can you buy in cash?
Along with this, it is important to know that you can buy gold up to Rs 2 lakh only with cash. If you buy gold worth above this amount, you will have to pay it through card or check along with PAN card. And as far as cash transactions are concerned, there is section 269ST of the Income Tax Act.
Under this, you cannot do transactions of more than Rs 2 lakh in a day, so basically if you buy gold by paying more than Rs 2 lakh in cash, then you will be breaking the rules. And there is also a penalty on this, which is imposed on the person taking the cash.
Who can store how much gold?
- A married woman can keep up to 500 grams of gold with herself.
- An unmarried woman can keep up to 250 grams of gold with herself.
- A man can keep up to 100 grams of gold with him.
You can keep gold in the limit above this also, but you should have the answer as to where you have got this gold from.
