How Much Gold Can You Buy Without Pan Card? 8 Important Points To Note

1. Gold Purchase: Pan Card After Specific Limit

Purchasing gold above a certain monetary limit requires your PAN card or similar KYC document.

2. Gold Purchase Transaction Limit

If you purchase gold worth Rs 2 lakh or above, you will have to furnish your PAN card details.

3. Gold Purchase: Rule Under Section 114B

Furnishing of PAN card under Section 114B of the Income Tax Rules is mandatory for purchasing gold above Rs 2 lakh.

4. Gold Purchase: Rule Under Section 114B

You can buy gold up to Rs 2 lakh only with cash, an amount exceeding this has to be paid through card or cheque along with PAN card details

5. Gold Purchase: Rule Under Section 269ST

Under section 269ST of the Income Tax Act, you cannot do cash transactions exceeding Rs 2 lakh in a day for purchasing gold

6. Gold Purchase: Cash Transaction Limit

Purchasing gold for amount more Rs 2 lakh in cash in a single day, is subject to penalty equivalent to the cash transaction amount under Section 271D of the Income Tax Act.

7. Gold Under Reporting Entities

Gold was designated as reporting entities as government brought the gems and jewellery sector under Prevention of Money Laundering Act (PMLA) 2002.

8. What Is Reporting Entities For Gold

These reporting entities are required to adhere to KYC norm, which means declaration of PAN or Aadhaar for cash transactions surpassing a specified limit.