New Delhi: The government will soon notify a new threshold for reporting to authorities deals in gold and other precious metals and stones with a view to curb parking of black money in bullion, Revenue Secretary Hasmukh Adhia has said.
The government had on Friday reversed its August order bringing gems and jewellery dealers under the purview of the reporting requirement of the Prevention of Money Laundering Act. In an interview to PTI, Adhia said the August 23 order had to be rescinded because it had created “confusion and a lot of negative sentiment” because no threshold had been set for transactions that had to be reported.
This led to jewellers implementing the August 23 order on the lines of banks, where cash transactions of Rs 50,000 and above are to be reported. “And that affected sentiment. So, now we have to sit down and decide about it,” he said.
The decision to rescind the August order has brought much festive cheer to the jewellery sector as now there is no need to quote the income tax permanent account number for jewellery purchases exceeding Rs 50,000.
