As per the revolutionizing decision going on in the financial aspect of Country, now the panel of the financial regulators have proposed that all the Gold transaction must be carried out under the PAN number from jewelers for all the transactions. Earlier the gold transactions above Rs 2 Lakhs were ordered to be registered by the jewelers. The orders for limiting the daily cash against the gold sales has also been passed for the purpose of curbing the tax evasion.
The finance committee has also recommended that the decision of registering PAN with the gold transactions was taken to prevent the gold transactions going on underground. Also, the orders have been passed to register all the gold transactions using an electronic registry like depository to reduce the underground gold transactions.
The household finance panel also came up with the note that there are many measures in the gold market that are taken to fully deter the tax avoidance like holding the asset. Also, the committee is focusing on making the tax avoidance strict.
On the recommendation of the subcommittee of the financial stability and development council, the panel was set to research on the facts of household finance in India. As per the finding so far, the panel came out with the fact that there are high gold holdings in India as compare to other parts of the world. Also, it came out in their report that the Indian household can get high rates of return from reallocating some portion of the gold holding to the financial asset.
There are many reasons, why household holds the Gold and one possible reason is the high rate of gold holdings can avoid taxes, hiding the illicit proceeds.
The Panel Recommends Several Gold Bonds Variants
The panel has recommended many different gold bonds with the default inheritance features. The variants of these certificated can be structured to make their inheritance matrilineal unless the woman has no daughter, in which case the son can inherit the gold bond. The panel has also proposed that the new variant on the RBI sovereign gold bonds are currently put on circulation for physically redeeming the household wish and not just on maturity.
With the order of registering every gold transaction with the PAN there are many financial aspects like tax avoidance can be easily resolved. Jewelers ordered to register every gold transaction electronically.
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