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GOLD PURCHASED THROUGH CREDIT CARD

Sumit Hooda (16 Points)

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??

 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.
1 Like

Sumit Hooda (16 Points)
Replied 18 October 2021

They have only cash and gave me and they are so close that i can't deny. I can arrange for affidavit.
1 Like

anil jain (Partner) (964 Points)
Replied 18 October 2021

Suggestion of Mr Abhay Gupta is good.

However, alternatively

It will be deemed that you bought jewelry.

Pl keep the invoice in your record which should be in your name.

Gifted to relative.

If she is not a relative defined U/S 56,

she will be liable to tax on value of that  gift.

If she is  a relative defined U/S 56, no tax on relative. then no worry.

1 Like

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