Gold Purchase Rules: If you are planning to buy gold on Diwali, then it is important to know the gold buying rules well before that. On Diwali, we buy gold as an auspicious sign, on top of that, the wedding season is going on, so a lot of jewelry will be bought, but in such a situation one should also know the income tax and other government rules. In fact, there are some important rules about buying and keeping gold, if you don’t follow them, you can get into big trouble.
What documents are required?
When you go to buy gold, you may be asked for a PAN card or similar KYC document. PAN card has been made mandatory for some transactions in the country, so as to stop the use of black money. If you buy gold worth Rs 2 lakh or more, you need to show PAN. The country has this rule under Section 114B of the Income Tax Act. Before January 1, 2016, there was a PAN rule for buying gold above Rs 5 lakh.
How much gold can you buy in cash?
You can buy gold up to Rs 2 lakh with cash only. If you buy gold worth more than 2 lakh rupees, you have to pay through check with card or pan card. Under Section 269ST of the Income Tax Act, you cannot make cash transactions exceeding Rs 2 lakh in a day. So basically if you buy gold for more than Rs 2 lakh in cash, you will be violating income tax laws which is a punishable offence.
Who can keep how much gold?
A married woman can keep up to 500 grams of gold.
An unmarried woman can keep up to 250 grams of gold.
A person can keep up to 100 grams of gold with him. If there is more gold than this, it is important that you have the answer and appropriate documents about where you got the gold from.