Hike up cash purchase limit of Jewellery up to Rs 100K

GJC urges that the limit of jewellery purchasing for cash of Rs. 10,000/- per day to be increased to Rs. 1,00,000/- per day.

In the row GJC explained; currently, the monetary limit on revenue expenditure or purchase limit in cash is Rs. 10,000 per day. A majority of the people in Rural India prefer Gold as an Investment and have their savings in the form of Gold. In case of Medical / financial emergencies they approach the jeweller to liquidate their savings or investment.

But due to provisions contained in Section 40A of the Income tax Act, a jeweller is unable to make payment above Rs. 10000/- in cash. In normal situations, most of jewellers have buy back policies and the customers get higher rates when they go back to sell to those jewellery from where they would have purchased. However, because of the monetary limit of Rs 10,000/- they are compelled to go to small and unorganized jewellers and sell the jewellery at a loss. The customers or rural farmers have no choice but make a distress sale and they badly need money in times of emergency.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top