People in India love to buy gold but very few people are aware of a rule for buying gold. Actually, there is a limit for buying gold in cash, which is called ‘Single Transaction Rule’. Most people do not know about it.
Let us tell you about this limit…If you are going to buy gold in cash, then it is important to follow the single transaction rule. Because, if the purchase is made in cash more than this fixed limit, then you can get a notice from the Income Tax Department.
Although there is no limit for buying gold, there is definitely a rule for buying it in cash. Under the single transaction rule, a customer can buy gold jewellery worth up to Rs 2 lakh in cash.
However, if the purchase is above this limit, the payment has to be made through card or other means. Like customers, jewelers also have to follow the Income Tax rule related to single transaction.
Under this rule, the gold seller can accept cash up to Rs 2 lakh, for cash more than this he will have to check the identity of the customer. In such a situation, if you pay more than Rs 2 lakh in cash while buying gold, then for this you will have to give a copy of your PAN card or Aadhar card to the shopkeeper.
If a jeweler violates this rule and takes more than Rs 2 lakh in cash for selling gold jewellery to a customer, he will have to pay a fine. This penalty is charged on the basis of the amount taken in cash in excess of the set limit.
Apart from this, bill, quantity of gold, customer’s documents, own PAN card, Aadhar card etc. are taken from the jeweler as proof of selling the jewelry.
