Income Tax Regulations: The Amount of Gold Allowed Without a PAN-Aadhaar, be aware of the guidelines

 Income Tax Regulations: The Amount of Gold Allowed Without a PAN-Aadhaar, be aware of the guidelines

Income Tax Regulations: Purchasing and retaining gold has a number of essential regulations that, if broken, might land you in serious problems and bring you before the tax authorities. Tell us anything you can about it.

Be cautious if you want to purchase gold around Diwali. In addition to the fact that it is wedding season and we buy gold on Diwali as an auspicious sign, a lot of jewelry will be bought at this time. However, it is important to be aware of income tax laws and other regulations. It's true that there are certain crucial guidelines when it comes to purchasing and holding gold; if you go against them, you risk serious consequences and possible attention from the tax authorities.

Is a document necessary?

You can be asked for your PAN card or another kind of KYC paperwork when you try to purchase gold. To combat the use of black money, several transactions in the nation now require the presentation of a PAN card. You will need to provide your PAN if you purchase gold for more than Rs 2 lakh. This provision is included in the nation's Income Tax Rules, Section 114B. Prior to January 1, 2016, it was mandatory to provide a PAN for gold transactions above Rs 5 lakh.

To what extent is gold negotiable in cash?

It's also crucial to be aware that you may only purchase gold with cash up to a total of Rs 2 lakh. You must pay with a card or cheque and your PAN card if you purchase gold for more than this amount. Additionally, the Income Tax Act's section 269ST addresses cash transactions. This states that you are not allowed to trade more than Rs 2 lakh in a single day, so essentially, you would be breaching the law if you purchase gold with more cash than Rs 2 lakh. Additionally, the individual who takes the money is subject to a punishment for this.

How much gold can someone store?

A married lady is permitted to retain 500 grams of gold on her person.

A single lady is allowed to retain up to 250 grams of gold on her person.

A guy is allowed to carry up to 100 grams of gold.

You are allowed to retain gold beyond this amount as well, but you must be able to explain where you obtained it.