The Division of Income (DoR), Ministry of Finance has clarified that any buy of gold, silver, jewelry, or treasured gems and stones beneath Rs 2 lakh doesn’t require PAN or Aadhaar of a buyer as necessary Know Your Buyer (KYC) doc.
Sources stated that the notification issued beneath PML Act, 2002, on December 28, 2020, is a requirement of FATF Sellers in Valuable Metals and Valuable Stones (DPMS) to hold out KYC and Buyer Due Diligence solely after they conduct money transactions above Rs 10 lakh.
“It is a requirement of FATF (Monetary Motion Activity Drive) – the worldwide cash laundering and terrorist financing overseer which because the inter-governmental physique units worldwide requirements aimed to forestall unlawful actions on terror funding and cash laundering,” they added.
In response to sources, one of many suggestions requires the DPMS sector to fulfil obligations of Buyer Due Diligence (CDD) after they conduct money transactions above a sure restrict (USD/EUR 15,000). India is a member of FATF since 2010.
“The misinformation being circulated in sure part of media that any buy, even when beneath Rs 2 lakh, of gold, silver, jewelry or treasured gems and stones in money require KYC are baseless,” sources added.
Since in India, money transactions above Rs 2 lakh are usually not allowed beneath part 269ST of Earnings-tax Act, 1961, sellers not receiving money greater than Rs 2 lakh in compliance with the prevailing provisions of the Earnings-tax Act won’t be coated beneath this notification, they stated additional.
(With ANI inputs)