New Delhi, August 29: A proposal has been made to the government to put certain limitations on selling and buying gold to avoid tax evasion. According to reports, a panel of financial regulators has proposed that any gold transaction must necessitate the presentation of PAN Card. The proposal also says that the PAN card rule should not be limited to transaction above Rs 2 Lakh, but all the transactions.
The panel also wants to put a ceiling on daily cash transactions in lieu of gold. The panel also proposed that all gold transactions should be registered electronically.
The panel, chaired by Financial Economist Tarun Ramadorai, also observed that Indian Households should release some of their gold holdings and invest them in financial assets that give better returns. India has one of the highest rates of household gold holdings. The committee also proposed releasing new RBI gold bonds, which can be redeemed in terms of gold or cash, whatever a household chooses.
The Modi government has been particularly harsh on tax evaders and has introduced several measures including demonetisation to curb the financial malpractice. However, the government’s anti-black money measures have come under criticism as they do not take into account the non-cash transactions to hide black wealth.
