SRIKAKULAM: The Income Tax department has asked gold traders to keep photo copies of the Aadhaar card or PAN card of customers for cash transactions. However, till they get ePoS machines, traders can also take other identity proofs for continuing the cash business.
The Srikakulam Chamber of Commerce and Rotary Central organised an awareness programme for traders on demonetisation and the new rules and regulations of the Income Tax Department.
Principal Commissioner of Income Tax Omkareswar expressed concern over the fraudulent activities of a few top jewellers on November 8 and 9. Business transactions worth Rs.700 crore were done in a couple of shops which had a yearly turnover of less than Rs.20 crore. “The gold merchants should not defeat the very purpose of the demonetisation. It is unfair to issue receipts showing transactions of up to Rs.1.9 lakh to avoid entry of PAN number which is a must for above Rs.2 lakh transactions,” he added.
Rotary International Srikakulam wing president Natukula Mohan and Srikakulam Gold and Jewellery Merchants’ Association president Perla Samba Murthy asked the official to give more clarity on cash transactions as banks were yet to supply ePoS (electronic point of sale) machines. Mr. Omkareswar said that the department would never create trouble to genuine traders. “The merchants should collect identity proof from customers if they want to make payments through cash only. Those who want to buy gold with white money will not hesitate to give the ID proof,” he added.
Income details’ verification
He said that the department had powers to verify income details going back up to six years. “Many people think that the Income Tax department did not have the manpower and it cannot verify the sources at this juncture. We are empowered to check the details of income at any time in the stipulated six years,” he said.
Additional Commissioner Ravi Shankar Narayan said that the government had given ample opportunities for declaring untaxed income before announcing the demonetisation policy. People should avoid benami transactions since it would drag them into troubles in future. “People should not keep others’ money in their accounts since the department can verify their actual income sources at any time,” he added.
Srikakulam Chamber of Commerce president Andhavarapu Varaha Narasimham and vice-president Korada Haragopal wanted the department to conduct such meetings in other towns to make people aware of the amendments made to the Income Tax rules. A few chartered accountants asked doubts over penalty procedure, cash limit in shops and investment procedures.
