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Plan to Buy Gold? Keep Aadhaar, PAN Card Handy

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Purchases from Rs 50,000 to Rs 1 lakh may require details from next FYThe next time you visit your neighbourhood gold or silver jewellery store you might have to quote your
PAN or Aadhaar card number for purchases aboveRs. 50,000-1 lakh. Currently ` , only purchases above Rs. 2 lakh require know-your-customer-compliance in the gold market. Chartered accountant Bhargav Vaidya, who provides consultancy services to the gems and jewellery sector, and the secretary of one of the country's largest bullion association, expects the KYC requirements for bullion and jewellery to be revised lower from the present Rs.2 lakh in Budget FY18, to be presented on Wednesday .
“I think the KYC (compliance) will be cut to Rs. 50,000 from Rs.2 lakh at present in the Budget for FY18,“ said Vaidya, proprietor of BN Vaidya & Associates. Apart from the trade, financial regulators take feedback while drafting policy for gold trade from Vaidya.

Any such move would come amid the government's crackdown against black money hoarders. Post demonetisation, entities holding unaccounted wealth in the form of scrapped Rs. 500 and Rs. 1,000 notes converted these largely into jewellery , bullion and real estate.

If Vaidya's hunch proves right, customers buying gold, silver or bars of either metal would need to quote their PAN or Aadhaar number, or even provide Kisan Credit Card in rural areas, for purchases over Rs. 50,000.Going by Monday's intraday gold rate of Rs. 28,674 per 10 gm that amount buys just 17 gm of gold.

Jewellers, preferring anonymity , feel the government's measure could be prompted by certain constituents in the trade giving it a bad name by selling gold and in lesser cases silver in exchange for old Rs. 500 and Rs.1000 notes post demonetisation.

Regulatory agencies like income-tax, Enforcement Directorate and the department of revenue intelligence have been busy surveying bullion dealers and jewellers across the country to figure out how huge sales took place on and immediately after the demonetisation announcement.

“My guess is KYC requirement would be revised for purchases above Rs. 1 lakh in the upcoming Budget,“ said Surendra Mehta, national secretary of India Bullion & Jewellers Association (IBJA).

The Economic Times New Delhi,31st January 2017

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