After the announcement of the ban of Rs 500 and Rs 1000 notes, the situations gradually keep on changing in the society. Especially it became a major hurdle for black money holders, and they are spending sleepless nights about how to exchange the old currency, and they are also looking for other sources to change the cash. However, black money holders chose Jewellery stores to exchange their notes for Gold.
Following the demonetization of big notes, one had witnessed a rush at Gold stores. People those who have black currency flooded to Jewellery stores to exchange their cash with Gold. Now Gold merchants took this as an advantage, and they are selling Gold to the people with black money at higher rates.
Meanwhile, Income Tax Department had found that there were a huge number of Jewellery merchants sold gold for higher rates. To avoid such situation, the IT department put focus on those retailers who are selling gold at high prices.
The Income Tax Department has also conducted raids, and it was known that many had sold off gold at higher rates, and in many cases, PAN cards had not been wanted. Now, an official from Income Tax department stated that they had noticed several loopholes. Many Jewelers had not following the basic rules and selling gold at higher rates for saving black money people. This had in fact led to order by the Government which made PAN card is mandatory while purchasing gold.
The senior official from IT department said, “We had already noticed that many Jewelry merchants are taking advantage of people those who want to exchange black money and selling gold to them at higher rates. In many cases, the PAN card details are not taking. So, we keep eyes on the Gold shops from now. The IT department is planning to conduct a series of raids across India at Gold stores. If the shopkeeper has not taken PAN details of the consumer, then he would explain a lot about the purchase. We will also check if gold had been sold at higher price. If we notice that cases, strict punishment will apply on the Gold Merchants.”