New Delhi: Consumption of gold and silver increases in the country during Diwali or wedding season. During the festive season, gold and silver shops are decorated very attractively, while many types of offers are also presented to attract customers.
Actually, it is believed in Hinduism that Diwali is the festival of Goddess Lakshmi. In such a situation, buying gold on the day of Dhanteras and Diwali brings Lakshmi to the house and prosperity remains. At the same time, according to traditional practice, people in India give gold in weddings.
However, there is a limit for purchasing gold and silver. For purchasing more than that limit, some details have to be given to the government. The government has imposed this rule to detect black money. In such a situation, it is important for you to know about the rules related to gold and silver transactions, especially when using cash.
These details will have to be given on purchases above the limit
Let us tell you that the government has tightened the rules for buying gold in cash by bringing the gems and jewellery sector under the Prevention of Money Laundering Act (PMLA) 2002. The government has made it mandatory for all jewellers to follow KYC norms. In such a situation, if you make a transaction for buying gold in cash above a specific limit, then you will have to provide information about Aadhaar card and PAN card. Apart from this, information will have to be given to the government for transactions of Rs 10 lakh or more.
Is there a limit on buying gold in cash
Apart from this, the Income Tax Department has also tightened its rules regarding the purchase of gold in cash, which includes TDS on cash withdrawals above a specific limit and restrictions on the maximum amount of cash transactions in a day between individuals. Under Section 269ST of the Income Tax Act, you can only transact up to Rs 2 lakh in cash for gold in a day. If it exceeds this, the recipient can be fined an amount equal to the amount transacted in cash under Section 271D of the Income Tax Act.
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