Rush to Spend Rs. 2,000 Notes The Impact of Cash Withdrawal

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As part of cash management, the Reserve Bank of India (RBI) has withdrawn Rs. 2,000 notes from circulation

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The announcement has led to a rush among people to spend their Rs. 2,000 notes before they become invalid

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Although many people choose to buy gold with their cash, there are certain limitations to be aware of

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The government brought the jewelry sector under the Prevention of Money Laundering Act (PMLA) in 2002

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Jewelry companies are now required to collect KYC documents, such as PAN and Aadhaar, from customers making cash purchases exceeding a certain limit

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Details of purchases above 10 lakhs with cash should be reported to the government by jewelry companies

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According to Income Tax rules, cash transactions exceeding 2 lakhs in the purchase of jewelry are not allowed under Section 269ST

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Buying jewelry with a total cash amount exceeding 2 lakhs is a violation, and the party receiving the cash will be liable to pay the penalty

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If someone buys jewelry worth 4 lakhs in cash, it violates Section 269ST, and the jeweler will have to pay a penalty of 4 lakhs

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To buy jewelry worth more than 2 lakhs, it is mandatory to submit PAN or Aadhaar, regardless of the mode of payment

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Rush to Spend Rs. 2,000 Notes The Impact of Cash Withdrawal

As part of cash management, the Reserve Bank of India (RBI) has withdrawn Rs. 2,000 notes from circulation

RBI's Recent Decision

RBI's Recent Decision

The announcement has led to a rush among people to spend their Rs. 2,000 notes before they become invalid

People's Response

People's Response

Although many people choose to buy gold with their cash, there are certain limitations to be aware of

Limitations of Buying Gold with Cash

Limitations of Buying Gold with Cash

The government brought the jewelry sector under the Prevention of Money Laundering Act (PMLA) in 2002

Jewelry Sector and Money Laundering Act

Jewelry Sector and Money Laundering Act

Jewelry companies are now required to collect KYC documents, such as PAN and Aadhaar, from customers making cash purchases exceeding a certain limit

KYC Requirements for Cash Purchases

KYC Requirements for Cash Purchases

Details of purchases above 10 lakhs with cash should be reported to the government by jewelry companies

Reporting Purchases to the Government

Reporting Purchases to the Government

According to Income Tax rules, cash transactions exceeding 2 lakhs in the purchase of jewelry are not allowed under Section 269ST

Cash Limit for Jewelry Transactions