Back to NRI NewsPAN card 'a must' to buy gold coins or bars worth Rs 2 lakhs or more
This vigilant step has come in from the Government to keep a check on the menace of black money. Also it is now mandatory on the part of the seller to collect tax at source on such sales. The buyer's identity - the PAN will be treated as the source of identity for this purpose, will be mandatory.
Moreover, as per the norms for tax collected at source, the seller would be required to collect tax at a specified rate (from buyers) and deposit it with the Government. This is different from Tax Deducted at Source (TDS) where payment is made after deducting tax at specified rate.
It is noteworthy that, the Income-Tax Act clearly explains that getting PAN does not mean that one will have to pay tax. It is a tool to establish the financial identity. Similarly, if somebody is paying tax collected at source and his income is less than the threshold for tax, than he can claim refund only if he has PAN. This is the procedure for not just for traders but for any one.
There would be no adverse impact on the buyers of gold coins or bars as furnishing PAN card for the purchase of gold, may not be resisted unless transaction is through unaccounted cash (i.e. black money).
It is thought that furnishing PAN card for such purchases will help the seller as well as the Government to keep a track on suspicious transactions in bullion trade. Also, with standard customs duty on gold bars being hiked to 4% from 2%, the Government aims to reduce gold import, and thereby even reduce current account deficit (CAD).
Top Stories From Other Section
