Cash Transaction Limit (Section 269ST Income Tax Act)
Under Section 269ST of the Income Tax Act, 1961, no business or individual is permitted to accept ₹2,00,000 (Rupees Two Lakhs) or more in cash in aggregate from a single person in a single day, or in respect of a single transaction. Any bill of ₹2 Lakhs or above must be settled via bank transfers, UPI, credit/debit cards, or account payee cheques.
Section 269ST · Income Tax ActMandatory PAN Card Requirement (Rule 114B)
As per Rule 114B of the Income Tax Rules, 1962, providing a valid Permanent Account Number (PAN Card) is mandatory for any purchase of bullion or jewelry exceeding ₹2,00,000 per transaction, regardless of whether payment is made by card, UPI, or bank transfer.
Rule 114B · Income Tax RulesMandatory BIS Hallmarking & HUID Act
Under the Bureau of Indian Standards Act, 2016, selling unhallmarked gold jewelry is strictly prohibited in specified districts across India. Every ornament sold must bear the 6-digit alphanumeric HUID laser stamp.
Bureau of Indian Standards ActItemized GST Breakdown
Gold transactions attract 3% GST on net gold value and 5% GST on making charges. Invoices issued at Alpana Jewellers clearly separate these items with our registered GSTIN.
GST Council RegulationsPersonal Gold Holding Guidelines (CBDT Instruction 1916)
Indian law sets no upper limit on the quantity of gold jewelry an individual can hold, provided it is acquired from explained income, inheritance, or gifts. Non-seizure thresholds during tax searches: 500g for married women, 250g for unmarried women, and 100g for men.
CBDT Instruction No. 1916Capital Gains Tax Rules
Profits from selling physical gold held for more than 24 months are taxed under Long-Term Capital Gains (LTCG) provisions (12.5% statutory rate under recent tax amendments). Gold held for less than 24 months is taxed as Short-Term Capital Gains (STCG) based on your income tax slab.
Income Tax Capital Gains Provisions