Gold Buying Cash Limit: The purchase of gold jewelry increases during the festival and wedding season. If you are also planning to buy gold, then first know the limit of buying in cash, because it has a limit.
If you buy in cash more than the prescribed limit, then you can get a notice from the Income Tax Department. Let us tell you how much gold can a person buy in cash?
Limit of buying gold in cash
There is no limit to buying gold in the country, but rules have been made for buying in cash. Under these rules, a customer can buy gold jewelry up to two lakh rupees in cash, but he will have to pay more than this amount through a card or other means.
It is necessary to follow the single transaction rule
Like customers, jewelers will also have to follow the rule related to single transactions of Income Tax. In such a situation, the seller can accept cash up to two lakhs, for cash more than this he will have to check the identity of the customer. If you pay more than 2 lakh rupees in cash while buying gold, then you will have to give a copy of your PAN card or Aadhar card to the shopkeeper.
According to the income tax rules, if a jeweler takes more than 2 lakh rupees in cash while selling gold jewelry to a customer, then he will have to pay a fine. This penalty will be charged based on the amount taken in cash more than the prescribed limit. Apart from this, bills, quantity of gold, customer’s documents, PAN card, Aadhar card, etc. are taken from the jeweler as proof of selling jewelry.
