GOLD PURCHASED THROUGH CREDIT CARD

17 October 2021

Yesterday i went to a jeweller alongwith a close relative who wanted to purchase some gold ornaments for her use. She bought 2 gold articles and total invoice amount was 3.25 lakh and jeweller asked to submit PAN . She was not carrying pan and it was necessary to purchase those items, so i gave my pan to note. Moreover, i paid through my 3 different credit cards. What are the consequences i may face in future from IT Dept and what would be the solution??

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5 Replies

sabyasachi mukherjee (6640 Points)
Replied 18 October 2021

Sumit

it's foolish
the person purchasing must use his pan card

Sumit Hooda (16 Points)
Replied 18 October 2021

I know it's a foolish act but couldn't back off as these relatives had always been supported our family in every odd times.

CA ABHAY GUPTA (Practice) (3134 Points)
Replied 18 October 2021

Since you give your PAN and payment is made by yourself then it will be deemed as the purchase makes by you only unless you have an affidavit from your relative which says that the said transaction was made by them on that date and the payment made by you on that date which is return by them on following dates, required there bank statements to prove that the payment made to you is either from accumulated money or from any source other than depositing of cash. Note: its a matter of litigation now and burden of proof is on you,to satisfy AO you can relay on above stated documents as evidence in your case.

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