Keep PAN, Aadhar handy for bullion & jewelry purchases above Rs 50K post Budget 2017
The Govt. of India is introducing a new policy for big ticket purchases of jewelry in the country. It has planned to make Aadhar card or PAN card, or both mandatory for such high amount jewelry purchases. This new policy is expected to be brought under immediate effect. Govt. has set a amount of purchase i.e. Rs. 50,000 which will now require customer’s Aadhar card or PAN card copy to be deposited at the jewelry shop. This initiative of the Modi Govt. is expected to bring down the menace of black money and the practice of investing black money in gold and precious jewelry.
Present Know Your Customer compliance in Gold market
At present, the rule is that, if a customer purchases gold worth Rs. 2 lakh or higher, then only he / she needs to provide KYC documents. KYC means proof of identity and address of the concerned customer making the gold purchase. After the new policy is introduced, the customers will have to provide Aadhar Card or PAN card to the jewelry shop to make purchase or gold, silver and precious stones worth Rs. 50,000 or higher. This new mandate is expected to be introduced on the Union Budget day to be held on 1st Feb, 2017.
Some important features and advantages of the scheme
- KYC documents like Aadhar Card or PAN card are to be made mandatory for big ticket gold, silver and precious stone purchases. Aadhar card holds the biometric and other important data of the card holder and thus is very efficient way for identification of the purchaser.
- In rural areas where, these PAN or Aadhar cards are not yet made by villagers, they can also make use of their Kisan credit card which was provided by the govt. to make gold and silver purchases for amount exceeding Rs. 50,000.
- The policy will most probably be introduced in the 2017 Budget which will be presented by the Hon’ble Finance Minister Mr. Arun Jaitley on 1st Feb, 2017.
- After demonetization of Rs. 500 and Rs. 1000 notes on 8th Nov, 2016, there has been a major growth in the gold and jewelry purchases using the unaccounted wealth of black money hoarders.
- This new policy will surely put a stop on the investment of black money in gold market and the practice of easily turning them into white money.
Agencies active for scrutiny
Several agencies are thoroughly scrutinizing such big ticket purchases of gold, silver and precious jewelry and trying to grab such offenders. The IT Dept, Revenue Intelligence Dept. and the Enforcement directorate are making investigations and raids throughout the country to catch the culprits involved in black money hoarding.
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