PAN paused

Jewellery purchases exceeding Rs.50,000 won't require the income tax PAN to be provided after the government reversed an earlier notification, providing a big festive cheer for the sector and potential customers.

Jewellers will also not be required to inform authorities about jewellery purchases of over Rs.50,000 after the government rescinded a notification issued on August 23.

Dealers in precious metals, precious stones and other high-value goods having a turnover of over Rs.2 crore in a financial year had been notified as persons carrying on designated business and professions under the PMLA 2002. This had made them reporting entities under the PMLA requiring them to intimate the relevant authorities about transactions above certain limits.

The government said the notification had been rescinded because certain incongruities had been brought to its notice and a fresh notification will be issued, indicating that the sector may still come under greater watch.

Earlier, like 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.

The entities covered by PMLA have to maintain records of all transactions of value exceeding Rs.10 lakh, all cross-border wire transfers of more than Rs.5 lakh and all purchases and sales of immovable property of Rs.50 lakh or more.

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