If you want to buy gold with cash, then know all the rules, you may have to pay in haste

If you are also thinking of investing in gold with Rs 2000 note, then let us tell you that you can buy gold through cash only up to a certain limit. You will have to submit your documents if you buy above the limit.

May 24, 2023 - 19:02
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If you want to buy gold with cash, then know all the rules, you may have to pay in haste

People in India are always ready to invest in gold. In such a situation, after the withdrawal of the Rs 2000 note by the Reserve Bank of India (RBI) on May 19, people have reportedly come out in large numbers to buy gold from the Rs 2000 note, so that they can get rid of that note as well and invest in it. May it also happen.
But if you are thinking that you can buy as much gold as you want through cash, then it is not so. Today we are going to tell you how much gold a person can legally buy without ID proof / PAN card. Also, is there any limit on the quantity of gold that can be bought in cash even after providing a PAN card or not?
First of all, know what the rules are made by the government to buy gold through cash. The government has made rules governing the purchase of gold with cash under the Prevention of Money Laundering Act (PMLA), 2002. For this, the government also issued a notice on December 28, 2020.
Under this Act, if a customer buys gold worth Rs 10 lakh or more in cash, then the jewelers will have to inform the authorities immediately by taking KYC of that customer i.e. his PAN or Aadhaar card.
Income tax laws do not allow cash transactions beyond a specified limit. Under Section 269ST of the Income Tax Act, 1961, a person cannot carry out cash transactions exceeding Rs 2 lakh in aggregate in a day, whether the person buys gold worth Rs 2 lakh at a time or buys gold worth a few thousand. Overall, the point is that the person cannot buy gold above Rs 2 lakh in cash in a day.
If a person buys gold jewelery worth more than Rs 2 lakh in cash in a single day, it will be a violation of the Income Tax Act. The taker of cash in the such transaction will be liable to pay a penalty on the amount transacted in cash as per section 271D of the Income Tax Act.
If you want to buy gold above Rs 2 lakh, then it is mandatory to give PAN or Aadhaar card. Under Rule, 114B of the Income Tax Rules of 1962, PAN details are mandatory for the purchase of gold for transactions of value 2 lahks and above.
Apart from this, the PMLA rules also make PAN or Aadhaar mandatory for transactions above certain specified limits.

Muskan Kumawat Journalist & Writer