If you are also going to buy gold on Diwali, be careful. On Diwali, we buy gold as an auspicious time. On top of that, the wedding season is on, so a lot of jewelry will be bought during these days. But in such situations income tax and other government rules should also be known. In fact, there are some important rules regarding buying and holding gold. If that rule is violated, you can land in big trouble and come under the notice of the Income Tax authorities.
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 requirement to show PAN for purchases of gold above Rs 5 lakh.
Along with this, it is important to know that you can buy gold up to Rs 2 lakh only with cash. If you buy gold worth more than this amount, you have to pay by check with card or PAN card. Also under the Income Tax Act, you cannot transact more than Rs 2 lakh in a day. So basically if you buy gold with cash more than Rs 2 lakh, you are breaking the rules and there is a penalty for that, which is levied on the person taking the cash.
How much gold can anyone save?
– A married woman can keep up to 500 grams of gold.
– An unmarried woman can keep up to 250 grams of gold.
– A man can keep up to 100 grams of gold with him.
– If you want to keep gold more than this, you will have to report to the Income Tax Department.