Any person planning to buy jewellery worth Rs5 lakh and more or paying a life insurance premium of Rs50,000 or above, has to quote PAN (Permanent Account Number) from July 1. “As per the amendments in the income tax (I-T) rules, coming into effect from July 1, quoting PAN will be mandatory for any payment of Rs5 lakh and above for purchase of jewellery or insurance premium of Rs50,000 or above,” an I-T official confirmed.

The customer would need to submit copy of his PAN and quote it as well with the jeweller, while buying jewellery. 

High-value purchase of jewellery, among valuables, have often been feared to be a much favoured route for circulation of black money and quoting of PAN would help the tax authorities in tracking such transactions.

Recently, the Reserve Bank of India had also asked the banks to consider the jewellers and bullion dealers as high-risk customers.

“So, to check any possible money laundering, this measure has been introduced,” the source said. From July 1, if a bank wants to issue a debit card to its customer, the latter has to quote PAN.

Till date it is applicable in the case of issuance of credit card.

The PAN will also become mandatory in the case of paying a life insurance premium of Rs50,000 and above. 

Transactions that already require PAN include sale or purchase of any immovable property valued at Rs5 lakh or more, sale or purchase of vehicles other than two-wheelers and bank deposits exceeding Rs50,000.

Source: Hindustan Times  Paper

Return shall be furnished on or before August 31, immediately following the financial year in which the transaction is registered or recorded. Return should be furnished in Form No.65 to Commissioner of Income Tax (Central Information Branch)/ its authorised agency. It should be furnished through a floppy/cd/dvd by the responsible person as per the Act.

is it compulsory to furnish the return through floppy or cd or dvd?????

we cant furnish through hard copy?????

Dear Pragnesh, In your list JEWELLARY purchase is absent. What about its status for AIR?

In UP STATE this limit is already 50th. in view of VAT

for ITAX also it is 50 th I recollect so.

In my above post, i mentioned it as Form NO.65, it is wrong. Kindly read it as Form No.61A. In this Form 61A there are Part A and Part B. The AIR is to be submitted in Floppy/CD/DVD for both Part A and Part B and paper copy for Part A of Form 61A. I think it can also be sent through online through NSDL Website (tin-nsdl.com). For this one has to download AIR software from NSDL Website. Further information can be had from this link (https://tin-nsdl.com/airdownloads.asp)

Now dealers will not issue single invoice for more than Rs. 5 lakhs...!!!!

Dear All I have one good explanation on AIR, might be it will help you to understand the concept on AIR.

Annual Information Return (AIR) of ‘high value financial transactions’ is required to be furnished under section 285BA of the Income-tax Act, 1961 by ‘specified persons’ in respect of ‘specified transactions’ registered or recorded by them during the financial year. The due date of filing of the return is the 31st of August of the following year.

The ‘specified persons’ and the ‘specified transactions’ are listed in Rule 114E of the Income-tax Rules, 1962. Briefly, these are as under:
.
.

This is updated till 30th June 2011

Thanks

Later The Central Board of Direct Taxes (‘CBDT’) has amended Rule 114B of the Income-tax Rules, 1962 (‘Rules’) by notifying1 Income-tax (5th Amendment) Rules, 2011 in respect of furnishing of PAN for certain transactions with effect from 1 July 2011.

1. Payment for life insurance premium [Rule 114B(q)] :- Payment aggregating fifty thousand or more in a year to be made to an insurer4 towards life insurance premium.

2. Payment to dealer for purchase of bullion or jewellery [Rule 114B (r)] :-

* Payment of an amount aggregating INR 5 lakh or more at any one time; or
* Payment against a bill for an amount of INR 5 lakh or more for purchase of bullion or jewellery.