Buying Gold: Keep Your KYC Documents Ready

For buying gold worth less than Rs. 2 lakh also, next time you visit gold shop do remember to carry your ID such as PAN, aadhaar for KYC verification. And there is a fear within the community that the centre beginning this year shall make cash transactions to be necessarily KYC compliant in the budget 2021.

Buying Gold: Keep Your KYC Documents Ready

There is a belief that the government agencies may clamp down if there is found any suspicious transaction after the introduction of Prevention of Money Laundering Act (PMLA) for the sector.

In the current regime, all of the asset classes except for gold need KYC documents. But in case of gold it has to be worth more than Rs. 2 lakh to mandate KYC verification. In doing so, the government is making an attempt to make gold at par with other asset classes including stocks, mutual funds and real estate.

Also, there has been a consideration of coming up with comprehensive gold policy in order to develop gold as an asset class. Implying that the precious yellow metal shall no longer be 'undisclosed treasure' but a fair investment and luxury holding. India annually consumes 800-850 tonnes of gold.

"By notifying dealers in precious metal and precious stones under PMLA, the jewellers who deal in gold, silver, platinum, diamond and stones have become reporting entity to the Financial Intelligence Unit," the publication quoted Surendra Mehta, national secretary, India Bullion & Jewellers Association (IBJA) as saying.The gold trade was brought within the PMLA ambit on December 28.

Also, as explained by Mehta jewellers would need to report all suspicious transactions as well as transactions in cash that pertain to single or multiple operations over Rs. 10 lakhs in a month to the authorities.

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