The Division of Income (DoR), Ministry of Finance has clarified that any buy of gold, silver, jewelry, or valuable gems and stones under Rs 2 lakh doesn’t require PAN or Aadhaar of a buyer as necessary Know Your Buyer (KYC) doc.
Sources mentioned that the notification issued below 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 once they conduct money transactions above Rs 10 lakh.
“This can be a requirement of FATF (Monetary Motion Process 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 keeping with sources, one of many suggestions requires the DPMS sector to fulfil obligations of Buyer Due Diligence (CDD) once 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 under Rs 2 lakh, of gold, silver, jewelry or valuable gems and stones in money require KYC are baseless,” sources added.
Since in India, money transactions above Rs 2 lakh will not be allowed below part 269ST of Revenue-tax Act, 1961, sellers not receiving money greater than Rs 2 lakh in compliance with the prevailing provisions of the Revenue-tax Act is not going to be coated below this notification, they mentioned additional.
(With ANI inputs)