The government has given relief to the jewelers and jewelry buyers. Now the obligation of PAN card has been abolished to buy jewelry worth Rs. 50 thousand. Consumers will not have to inform the government about the purchase of jewelry up to 50 thousand. Jewelers and jewelry purchases have now been excluded from the Prevention of Money Laundering Act 2002 (PMLA). 

Now the jewelers will not have to disclose their buyer's information to the financial investigating agencies. The jurors had a fear that legalizing the provisions of the PMLA on a jewelry purchase could also affect legal sales. Due to the stringent KYC provisions, the jurors were embarrassed. On August 23, the government had also brought the gems and jewelry sector under the provisions of PMLA.

The government feared that suspicious elements were involved in money laundering through this business. This suspicion had become even stronger since the ban on bondage. The Income Tax Act allows any cash sale up to Rs 2 lakh without having to do KYC. Under the provisions of PMLA, any cash sale of more than 50 thousand rupees cannot be made without proof like PAN, Aadhaar, Driving License or Passport Copy.

Hence, now the customers buying jewelry costing less than Rs.50,000 will no need to show their PAN card or any identity proof.

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