Income Tax department issues notices to jewellers across India

By

Maverick Martins

Published
Jan 1, 2020

​The Income-Tax (I-T) department has issued notices to several jewellers from across India, to recover over cash deposits made in 2016-17 after demonetisation.
 

In Mumbai alone, the I-T department has sent recovery orders to around 500 jewellers, while the number is expected to be higher in Delhi, the Business Standard reported.
 
The jewellers came under the tax group's lens after the banks, where the businesses deposited the cash, reported the inflows to the government and the tax office.

On November 8, 2016, the government announced demonetisation of Rs 500 and Rs 1,000 notes. However, several jewellers accepted old currency notes even after the allowed period, selling gold at a 30-40 percent premium.
 
“In view of the reports of additional demand orders of income tax following cash deposits during demonetisation by retail jewellers, we have advised all manufacturer and wholesalers to do proper KYC (Know Your Customer) of retail jewellers, including their tax demand, before delivering any fresh material to them,” Surendra Mehta, national secretary at Indian Bullion and Jewellers Association, told the publication.
 
Interestingly, jewellers have received the notices amid an economic slowdown, which has resulted in poor jewellery sales across India in the last six months.
 
The last date to issue the notices was December 31. To file an appeal, jewellers will have up to 30 days from the receipt of the tax department's order.