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We buy runescape accounts12/25/2023 In the above example, presuming a cash transaction of Rs 4 lakh took place, the receiver of the cash i.e., the jeweller will be liable to pay a penalty of Rs 4 lakh. The penalty amount will be equivalent to the amount of the cash transaction. As the amount of transaction exceeds Rs 2 lakh as mentioned in Section 269ST, hence, penalty will be applicable under Section 271D. Suppose an individual buys gold jewellery of Rs 4 lakh in cash. The receiver of the cash in such a transaction would become liable to pay a penalty of the amount transacted in cash as per Section 271D of the Income Tax Act. Thus, if you buy gold jewellery in cash for an amount exceeding Rs 2 lakh in a single day, then you will be violating the income tax law. Section 269ST of the Income Tax Act prohibits cash transactions exceeding Rs 2 lakh in a single day, in aggregate from a person in a day or in respect of transactions relating to one event or occasion from a person. Income tax laws do not permit transactions in cash above a specified limit. This includes TDS on cash withdrawals exceeding specified limits from bank accounts, the maximum amount of cash transaction that can be done in a single day between two persons and so on.Ĭash transaction limits under income tax laws In recent years, the government has also tightened the rules related to cash transactions under the Income Tax Act, 1961. Jewellers have been made reporting entities under the PML Act which requires them to comply with KYC norms (i.e., asking for PAN or Aadhaar of the purchaser for cash transactions above specified limit) as well as report large value cash transactions i.e., of Rs 10 lakh and above to the government. The government issued the notification on Decemin this regard. The government has made the rules governing buying of gold with cash stricter by bringing the gems and jewellery sector under the Prevention of Money Laundering Act (PMLA), 2002. With 24Karat gold prices hovering around Rs 60,000 per gram, it is prudent to know the rules and regulations for buying gold jewellery. It is considered auspicious to buy gold and silver during Dhanteras, Diwali and Akshaya Tritiya. The festive season is upon us and it is the time that many of us buy precious metals such as gold and silver.
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