Proposed checks on gold purchase not enough

0Shares

It refers to a committee of Reserve Bank of India (RBI) having recommended for setting up of a e-gold registry to record every sale-purchase of gold for having an effective check on investment of unaccounted money in gold where total about 11-percent of total assets of countrymen is in form of gold as compared to just .4 percent in China. Committee has also rightly recommended for compulsion of PAN card on every purchase of gold which is presently necessary for gold-purchase exceeding rupees two lakhs. With no check on cash-withdrawal, private sellers of gold issue cash-invoices multiples of the amount allowable for making cash-purchases of gold.

 

To avoid such and common malpractice of private importers of gold, all import of gold should only be through banks only. Then concept of Know-Your-Customer (KYC) can also be applied for all those purchasing gold in any form with sellers required to submit copies of such specially designed KYC-gold on demand to excise-department or some other regulatory body. Gold-jewellery for sale in India should be of maximum 14-carrots.

 

Further there can be a permanent Voluntary-Disclosure-Scheme whereby any amount of undisclosed income may be allowed to be declared in Income-Tax returns on payment of 50-percent tax (slightly higher than maximum tax-slab of 30-percent plus GST 18-percent) so that people may opt for voluntary disclosure of unaccounted money rather than investing in gold.

 

 

 

 

 

Be Part of Quality Journalism

Quality journalism takes a lot of time, money and hard work to produce and despite all the hardships we still do it. Our reporters and editors are working overtime in Kashmir and beyond to cover what you care about, break big stories, and expose injustices that can change lives. Today more people are reading Kashmir Observer than ever, but only a handful are paying while advertising revenues are falling fast.

ACT NOW
MONTHLYRs 100
YEARLYRs 1000
LIFETIMERs 10000

CLICK FOR DETAILS


Observer News Service

Leave a Reply

Your email address will not be published.

KO SUPPLEMENTS