While announcing Union Budget 2015-16, the finance minister proposed this. “We have assigned the job to our consultants to get clarity from the government on the issue. If the clause is applicable for us, we will go on strike,” said Haresh Soni, chairman, All India Gems & Jewellery Trade Federation..
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Under Section 114 (B) of the Income Tax Act, PAN details are required for purchasing jewellery worth over Rs 500,000. Last year, the government made it mandatory for jewellers to seek PAN details for purchase of gold coins worth over Rs 200,000. The current proposal brings the limit down to Rs 100,000 for jewellery purchase.
“The government has issued 15-20 crore of PANs so far. What about the remaining 100 crore of Indian population which includes farmers from remote Indian villages. All are jewellery purchasers. At the time of wedding in the family, even farmers purchase gold ornaments weighed 40-50 grams. That means, they cannot buy jewellery over 30 grams at the current price. This is impractical,” said Soni.
According to leading city based jewellery, the finance minister’s move is difficult to adhere to. Instead of the move to be ideally for curbing the black money, the finance minister’s move will promote black money, he added.