PAN card details not required for gold purchase upto Rs. 2 Lakhs

PAN card details not required for gold purchase upto Rs. 2 Lakhs As per Prevention of Money laundering Act , Jewellers were required to report the data of buyers to Financial Intelligence Unit. Every reporting entity was required to maintain a record of all transactions of value exceeding Rs 10 lakh, all cross border wire transfers of more than Rs 5 lakh and all purchase and sale of immovable property of Rs 50 lakh or more.PAN card details were needed from buyers who bought gold & jewellery above Rs. 50,000/- in cash. The stringent provisions of PMLA on the gems and jewellery sector were extended because of suspicious elements of money laundering, especially post demonetization last year.The government brought Jewellers under surveillance to ensure that no excessive gold sales were made with black money. The decision was taken at the 22nd GST Council meeting held on 6th Oct,2017. Now there is a relaxation for Jewellers as well as buyers of jewellery in cash upto Rs. 2 Lakhs. Jewellers will not have to report & buyers will not be required to submit their PAN card details. Even the Income Tax Act,1961 allows cash sales of upto Rs 2 lakhs without KYC details , but the norms of PMLA restricted the sales in any form above Rs 50,000 without proof of PAN, Aadhaar, driving licence or passport copy. So, Jewellers were unhappy about stringent KYC provisions as this will potentially hamper the jewellery purchases. PAN card details not required for gold purchase upto Rs. 2 Lakhs Jewellers or any entity dealing in gems, jewellery and other high-value goods that has a turnover of Rs 2 crore or more in a financial year will not be covered under PMLA (Prevention of Money Laundering Act, 2002).