Finance Minsiter Arun Jaitley had announced in his Budget speech that PAN number will be mandatory for all sales and purchases of over Rs 1 lakh.
“Quoting of PAN is being made mandatory for any purchase or sale exceeding the value of Rs 1 lakh. The third party reporting entities would be required to furnish information about foreign currency sales and cross border transactions,” Jaitley said in his Budget speech.
Tax authorities will also scrutinise 'splitting transactions' to avoid quoting the PAN number.
Fearing loss of business, jewellery trade unions had urged the government to exempt the sector from the new law.
Currently, under the Income Tax Act, cash purchase of jewellery worth over Rs 500,000 require a PAN card.
Jaitley had announced a host of other tough measures including dis-incentivising of cash dealings in real estate and other transactions.