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Jitu Sharma

23 Points Posted on 12 March 2021

what is cash sale limit of gold and jewelery in fy 16 17

Replies (4)

Quick Summary

For the financial year 2016-17, cash sales of gold and jewellery exceeding ₹2 lakh per transaction required the buyer's PAN details or Form 60. Section 269ST, which imposes penalties for cash receipts of ₹2 lakh or more, only came into effect from April 1, 2017. Businesses liable for income tax audit in FY 16-17 also had to file returns for specified transactions.

CA. Sourav Sarkar

Chartered Accountant

16188 Points Posted on 12 March 2021

Cash sales upto Section 269ST of the Income Tax Act provides that no person can receive an amount of INR 2 Lakhs or more in cash: In aggregate from a person in a day; In respect of a single transaction; or. In respect of transactions relating to one event or occasion from a person.

Jitu Sharma

23 Points Posted on 12 March 2021

Sir thanks for reply but as pee my knowledge 269ST is applicable from 1st april 17 in view of cash sale.... i want to know the tracehold limit of bullion and jewellery sale in cash for which pan of buyer is not required

CA. Sourav Sarkar

Chartered Accountant

16188 Points Posted on 12 March 2021

The department of revenue also clarified that any purchase of gold, silver, jewellery or precious gems and stones below ₹2 lakh does not require PAN or Aadhaar details of the customer.

CA HARSHITA AGARWAL

FCA

66 Points Posted on 12 March 2021

Yes the penalty for violating 269ST was introduced from 1.4.2017, hence not applicable in FY 2016-17.

But the Law in FY 2016-17 was that as Rule 114B and Rule 114E of Income Tax Rules (entry no. 18), if you are making any cash sale exceeding Rs. 2Lakhs per transaction, then you need to take a copy of the PAN of buyer (PAN of parents in case buyer is minor) and if PAN is not available make them fill Form No 60 and take any other Identity proof.

And if you were liable to Income tax Audit u/s 44AB, then you were required to file the return of such specified transaction under form 61A. Non compliance to the same attracts penalties.

Mind it that for FY 2016-17 the limit of 44AB was Rs 1Crore only, even if 44AD (8% presumptive tax) was allowed till 2Crores, so even you have furnished the same u/s 44AD , here for fillinf 61A turnover of Rs. 1 crore will be considered.