The person who buys jewellery has to compulsorily provide his Permanent Account Number (PAN) number to the jeweller.
The Income Tax Department is issuing instructions to the field authorities to check with all the jewellers to ensure that this requirement is not compromised.
This was informed by Union Revenue Secretary Dr Hasmukh Adhia on the questions relating to action by Income Tax Department in respect of old currency deposited in banks in an official statement.
Action will be taken against those jewellers who fail to take PAN number from such buyers. When the cash deposits of the jewellers would be scrutinized against the sales made, whether they have taken the PAN number of the buyer or not will also be checked, he informed.
We would be getting reports of all cash deposited during the period of November 10 to December 30,2016 above a threshold of Rs 2.5 lakhs in every account, the Revenue Secretary informed.
The department would do matching of this with income returns filled by the depositors. And suitable action may follow, he said.
Such group of people need not worry about small amount of bank deposits up to Rs .1.5 or 2 lakhs, since it would be below the taxable income.
There will be no harassment by Income Tax Department for such small deposits made, Adhia said.
Suppose the department finds that huge amount of cash above Rs 10 lakhs is deposited in a bank account, which is not matching with the income declared then this would be treated as the case of tax evasion and the tax amount plus a penalty of 200% of the tax payable would be levied as per the section 270(A) of the Income Tax Act.