How a lot gold can I purchase in money and do I have to submit my ID proof for a similar

I wish to purchase gold and preserve it for my youngsters’s marriage ceremony. I wish to use money to purchase gold. So, how a lot gold can I purchase in money with out and with PAN, or Aadhaar proof? What are the earnings tax implications?

-Seema Nair

By Balwant Jain, tax and funding professional

There aren’t any restrictions as to the quantity to which you’ll pay to purchase gold in money beneath the earnings tax legal guidelines. However, the earnings tax legal guidelines have restrictions on the recipient for accepting any quantity of two lakh rupees or extra in money in respect of a single transaction. So although you possibly can pay any quantity to purchase gold the jewelry is not going to settle for money two lakh rupees and extra in respect of each single transaction because the regulation prohibits him from accepting any quantity of two lakh rupees or extra for every transaction of the sale of jewellry. 

In case the jewellry accepts money past two lakh rupees, the earnings tax division can levy a penalty equal to the quantity accepted in contravention of the authorized provision.

Moreover, in case you might be shopping for gold from a jeweller for a price over two lakh rupees whether or not via money or in any other case, you must present the vendor along with your id like a PAN card or Aadhaar Card. So you should buy gold upto Rs. 2 lakhs with out having to furnish both PAN or Aadhaar quantity.

Since you might be planning to purchase gold for the marriage of your youngsters, I might advise you to spend money on Sovereign Gold Bonds (SGB) which helps you get higher returns over time. You get curiosity @ 2.50% yearly on the problem value of the SGB. Moreover, as and when the SGB is redeemed, you shouldn’t have to pay any capital positive aspects. Moreover, along with different advantages of digital gold, you’ll not should pay GST whenever you buy SGB although you must pay GST on the time of buy of bodily gold. Please observe that although you could have to pay GST whenever you truly purchase bodily gold on the time of the marriage of your youngsters however in the meantime the GST element saved will proceed to earn curiosity and appreciation in your funding.

(Views as expressed by the professional.)

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Updated: 23 Sep 2023, 08:59 AM IST