Black Money Clean-Up: Gold Sales On Tax Department’s Radar

The Narendra Modi government's sudden decision to demonetise Rs 500 and Rs 1,000 notes sent demand for gold soaring, as citizens rushed to convert their old currency into the precious metal. The sudden spike in demand for gold has put the tax department on high alert, with the Directorate General of Central Excise Intelligence asking jewellers to disclose detailed break-up of sales from November 7 to November 11.

The Income Tax Department is keeping a close watch on the sale of gold, especially where the purchase is broken into multiple transactions so that the buyer does not have to share his PAN details, Central Board of Direct Taxes Chairman Sushil Chandra told reporters on the sidelines of an event in Delhi.

An abnormal surge in sales has been reported by various jewellers in Goa, Mumbai, Punjab and Karnataka, a senior official in the tax department said on the condition of anonymity. There have also been reports of jewellers selling more gold than what's been shown on their books, the official added.

Illicit transactions in exchange for precious stones and metals and violations in the use of PAN cards have also been reported, according to the official.

Also Read: PM Modi, Your Team Blundered In Separating Demonetisation From VDIS