Indians Required To Furnish Tax Details in High-Value Jewelry Purchases
July 03, 11(IDEX Online News) – Indians will have to quote their income tax Permanent Account Number (PAN) if they buy jewelry worth more than $11,220 (Rs. 500,000) as of Friday.
Tax authorities confirmed that not only would buyers have to quote their PAN to the jewelry retailer; they would also have to furnish a copy of their PAN card for these purchases.
Authorities say high-value purchases of jewelry are among the methods adopted by many wealthy individuals to circulate their unaccounted or “black” money. Requiring that the PAN number be quoted will help authorities better track money trails.
The Reserve Bank of India (RBI) had recently asked banks to consider jewelry retailers and bullion dealers as “high risk customers”. Tax authorities said the PAN requirement would thus help check any possible money laundering as well.