Beginning Jan 1, 2016, the central government, in an initiative to curb black money transactions, has made it mandatory to quote the PAN (permanent account number) for transactions exceeding Rs 2 lakhs. However, the decision is being opposed by jewelers, who feel it will have a negative impact on their market.
“To bring a balance between compliance on legitimate transactions and the need to capture information relating to transactions of higher value, the Government has enhanced the monetary limits of certain transactions which require quoting of PAN . The monetary limits have now been raised to Rs. 10 lakh from Rs. 5 lakh for sale or purchase of immovable property, from Rs 25,000 to Rs.50,000 in the case of hotel or restaurant bills paid at any one time, and from Rs. 50,000 to Rs 1 lakh for purchase or sale of shares of an unlisted company,” reads an official press release from the company.
A delegation from All India Gems and Jewellery Trade Federation (GJF) met BJP President Amit Shah urging him to revoke the order on PAN Card, as it will have a negative impact on the jewellery industry and impact their market share.
G V Sreedhar, Chairman, GJF, said: “We will continue our efforts till we get a positive reply.”
In keeping with the Government’s thrust on financial inclusion, opening of a no-frills bank account such as a Jan Dhan Account will not require PAN. Other than that, the requirement of PAN applies to opening of all bank accounts including in co-operative banks.