Income tax rules: Some rules have been made by the Income Tax Department regarding the purchase of gold. Often people do not even take a proper bill while buying gold. Gold is an expensive metal, it is also necessary to follow the rules related to its purchase while buying it.

Some rules have been made by the Income Tax Department (income tax rules for gold) regarding the purchase of gold. For information, let us tell you that a limit has been fixed for purchasing gold without a PAN card and Aadhar card (gold purchasing limit without PAN). Know the complete information in the news.

The government has made these rules-

The Prevention of Money Laundering Act (PMLA) was enacted in 2002, setting the rules for the purchase of expensive metals (IT rules for gold). In 2020, reporting institutions were named, bringing the field of gems and jewelery under the purview of this Act. These reporting institutions nominated under this Act were instructed to follow the KYC rules (KYC rules for gold purchasing). This responsibility will be on the designated institutions-

According to this rule of the government (gold purchasing limit without aadhar), the buyer needs to submit PAN or Aadhar on making cash transactions for metals above the prescribed limit. These designated institutions will have to report large cash transactions of Rs 10 lakh or more to the government.

According to rule 114B of the Income Tax Rules 1962, if a customer buys gold for Rs 2 lakh or more, then he will have to submit the details of his PAN.

Violating the rule will be costly-

Many sections have been made in the Income Tax Act, which are going to be applicable in different cases. According to section 269ST of Income Tax, a person cannot make a cash transaction of more than Rs 2 lakh in a day.

The same rule applies to the purchase of gold in a day, that is, gold worth more than Rs 2 lakh cannot be purchased in cash in a day. This will be considered a violation of Income Tax rules (IT rules gold purchase). According to Section 271D of the Income Tax Act, the person receiving cash in such a transaction will pay the entire amount as a penalty. That is, if this is done, a 100 percent penalty (fine on gold purchase) will be imposed according to the amount.

Buying gold more than this limit will be costly-

According to the rules of cash transactions in a day (gold purchase without PAN), gold jewelry worth Rs 2 lakh or more cannot be purchased in cash. Whether gold worth more than 2 lakh is purchased through electronic payment like UPI or credit card, PAN, or Aadhaar will have to be submitted. If someone is buying gold without PAN and Aadhar card (PAN Aadhar is used in gold purchase), then its price should be less than Rs 2 lakh.

KYC is not required during this time-

KYC is not required on transactions less than 2 lakh (IT cash transaction rules) or the purchase of gold worth less than two lakhs. Because of this, there is no need for PAN and Aadhaar. But apart from this, whether it is a cash transaction or a transaction through electronic means, for transactions above Rs 2 lakh, the customer will have to submit PAN or Aadhaar (PAN Aadhaar KYC rules) or provide its details.

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