Any person planning to buy jewellery worth Rs5 lakh and more or paying a life insurance premium of Rs50,000 or above, has to quote PAN (Permanent Account Number) from July 1. “As per the amendments in the income tax (I-T) rules, coming into effect from July 1, quoting PAN will be mandatory for any payment of Rs5 lakh and above for purchase of jewellery or insurance premium of Rs50,000 or above,” an I-T official confirmed.
The customer would need to submit copy of his PAN and quote it as well with the jeweller, while buying jewellery.
High-value purchase of jewellery, among valuables, have often been feared to be a much favoured route for circulation of black money and quoting of PAN would help the tax authorities in tracking such transactions.
Recently, the Reserve Bank of India had also asked the banks to consider the jewellers and bullion dealers as high-risk customers.
“So, to check any possible money laundering, this measure has been introduced,” the source said. From July 1, if a bank wants to issue a debit card to its customer, the latter has to quote PAN.
Till date it is applicable in the case of issuance of credit card.
The PAN will also become mandatory in the case of paying a life insurance premium of Rs50,000 and above.
Transactions that already require PAN include sale or purchase of any immovable property valued at Rs5 lakh or more, sale or purchase of vehicles other than two-wheelers and bank deposits exceeding Rs50,000.
Source: Hindustan Times Paper