Gold prices have zoomed upwards following Prime Minister Narendra Modi’s announcement on Tuesday that notes of Rs 500 and Rs 1000 denominations would be withdrawn from the market with immediate effect. According to a report, to combat the problem of people with unaccounted income purchasing gold, the government on announced that persons buying jewellery have to provide their PAN number.
“We are issuing instructions to the field authorities to check with all the jewellers to ensure this requirement is not compromised. Action will be taken against those jewellers who fail to take PAN numbers from such buyers. When the cash deposits of the jewellers would be scrutinised against the sales made, whether they have taken the PAN number of the buyer or not will also be checked,” Revenue Secretary Hasmukh Adhia said.
The government has also warned that cash deposits above Rs 2.5 lakh threshold under the 50-day window could attract tax plus a 200 per cent penalty in case of income mismatch. “We would be getting reports of all cash deposited during the period of November 10 to December 30, 2016, above a threshold of Rs 2.5 lakh in every account.”The (tax) department would do matching of this with income returns filed by the depositors. And suitable action may follow,” Hashmukh Adhia added.
