Now PAN card not required for jewellery purchase of over Rs 50k
New Delhi: Giving a huge relief to the people on the festive occasion, the Centre on Friday announced that now the consumers will not have to furnish income tax Permanent Account Number (PAN) on jewellery purchase of over Rs 50,000.
Now, jewellers will also not need to inform authorities about jewellery purchases of over Rs 50,000 after the government rescinded a notification issued on August 23.
The government declared that the entities dealing in gems, jewellery and other high value goods and having an annual turnover of over Rs 2 crore will no longer be under the purview of the Prevention of Money Laundering Act (PMLA).
The government, however, clarified the reason behind the decision saying the notification had been rescinded because certain incongruities had been noticed and soon a fresh notification will be issued. The statement hinted that the sector may be kept under greater watch in near future.
“After considering various aspects of the issue, the government has decided to rescind the said notification. A separate notification after due consideration of points raised and wider stakeholder consultation in this regard shall be issued separately,” it said in a statement.
"The withdrawal of Rs 50,000 limit for KYC (know your customer) under PMLA is great news, as the imposition had impacted sentiment and sales to some extent,” said Sandeep Kulhalli, senior V-P, retail and marketing, Tanishq. Industry expects growth to recover after the relaxation.
“With the festive season still under way, the withdrawal of the notification has raised prospects of sales recovering in the third quarter,” said Surendra Mehta, national secretary, India Bullion and Jewellers Association.
Earlier, similar to other sectors, the threshold for KYC was Rs 2 lakh. This got lowered to Rs 50,000 after the jewellery sector was brought under PMLA on August 23.