In this guide (5 sections)
The documents checklist
| Document | Needed when |
|---|---|
| PAN card | Mandatory if the sale is above ₹2 lakh; recommended always |
| Address proof (Aadhaar, passport, voter ID, DL) | Every sale |
| Self-declaration of ownership | When there is no purchase bill (most family gold) |
| Original purchase bill | Optional — useful for your tax calculation |
| Bank account in seller's name | To receive payment |
| Gold loan documents | Only if releasing pledged gold |
Why PAN matters above ₹2 lakh
Indian income-tax rules require PAN to be quoted for any sale or purchase of goods worth more than ₹2 lakh in a single transaction. A reputable buyer will ask for it; a buyer who offers to "manage without PAN" on a large sale is a red flag.
The ₹2 lakh cash rule
Indian income-tax law prohibits receiving ₹2 lakh or more in cash from one person in a day, for a single transaction, or for one event. The penalty can equal the amount received — and it applies to the person receiving the cash, which in a gold sale is you. That is why serious buyers pay large amounts by IMPS, NEFT or RTGS. A bank transfer also gives you a permanent record for your tax return.
Do I need the original bill?
No. Most Indian family gold was bought decades ago, gifted at weddings or inherited, and has no bill. The law does not require a bill to sell your own jewellery. You sign a short declaration that the gold belongs to you or your family. Keep any bills you do have — they help prove the purchase cost when calculating capital gains tax.
Selling on behalf of a parent or for inherited gold
The person whose name is on the bank account receiving the payment should be the seller and complete KYC. For inherited gold, the legal heir sells in their own name with a declaration. Elderly parents can sell from home with family present — a key reason families choose a home visit.
FAQs
Can I sell gold with only Aadhaar?
Yes, for sales up to ₹2 lakh. Above that PAN is mandatory.
Is a purchase bill compulsory?
No. A self-declaration of ownership is accepted.