Govt to notify new limit for reporting gold transactions

Source: The Hitavada      Date: 09 Oct 2017 08:59:15



THE Government will soon notify a new threshold for reporting to authorities about transactions in gold and other precious metals and stones with a view to curb parking of black money in bullion, Revenue Secretary Hasmukh Adhia said.
The Government had on Friday reversed its August order of bringing gems and jewellery dealers under the purview of the reporting requirement of the Prevention of Money Laundering Act (PMLA).

In an interview to PTI, Adhia said that the August 23 order had to be rescinded because it created “confusion and a lot of negative sentiment” because no threshold for transactions to be reported was set.

“For the first time in India, we had notified that jewellers will be reporting entity (under PMLA) but what report they will submit to us that was not clear,” he said.

This led to jewellers implementing the August 23 order on the line of banks where cash transactions of Rs 50,000 and above are to be reported. “And that affected sentiments. So, now we have to sit down and decide about it,” he said.

The decision to rescind the August 23 order was assumed to mean that the requirement of quoting the Income Tax Permanent Account Number (PAN) for jewellery purchases exceeding Rs 50,000 is no longer applicable, and this provided a big festive cheer for the sector and customers.