In an attempt to combat black money, Government Of India by Finance Act 2012 has made it mandatory for certain traders like Jewellery dealers to collect tax (TCS) from customers on purchase of jewellery exceeding Rs.5 lakhs.
While complying with TCS rules for collection, payment and uploading of TCS
information (E-filing of TDS returns), Jewellery dealers have to furnish PAN of
customers. For Certain customers,it is not convenient to provide PAN as they
may have constraints in explaining the source.In such cases to accommodate high
net worth customers,unscrupulous traders have an easy source of benami PAN
particulars from reserved railway passengers chart.
The Income Tax Department will first initiate action from the tax payer side asking him to prove that he /she has not carried on the above transaction.The onus lies on the genuine tax payer for fault committed by the traders.
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