Jewellers resort to under-billing to avoid income-tax scrutiny in Chandigarh
After the government recalled Rs 500 and Rs 1,000 banknotes, many city jewellers are resorting to under-billing to some customers who are buying jewellery for more than Rs 2 lakh so that they do not face the income-tax department scrutiny.punjab Updated: Nov 19, 2016 17:08 IST
After the government recalled Rs 500 and Rs 1,000 banknotes, many city jewellers are resorting to under-billing to some customers who are buying jewellery for more than Rs 2 lakh so that they do not face the income-tax department scrutiny.
A senior income-tax officer said they found during a survey of Sector-22-based jewellery shops that most of the sale bills were of less than Rs 2 lakh and the jewellers didn’t maintain details of the customers.
As per rule 114-B of the Income Tax Act, “Every person shall quote his permanent account number (PAN) in all documents pertaining to the transactions of sale or purchase of goods or services of amount exceeding Rs 2 lakh per transaction.”
The official said in case a customer bought jewellery worth Rs 50 lakh post ban announcement, numerous entries of Rs 1.75 lakh each were made in the sale books the same evening. “There was a huge protest pan India recently against the government’s policy of TDS but government rightly maintained its stand,” he added.
“During the survey, our teams also checked and signed the sale books at variousjewellerystores so that no more entries could be added in the back date,” said the official.
A senior officer said that people who declared their undisclosed incomes under the Income Tax Declaration Scheme (ITDS) 2016 are on the happier side.
Not so indelible
While there may be many who will be looking for alternatives to get another exchange of cash after being inked on the index finger, there are these beauty salons and make-up stores, which have a solution.
Vaibhav Sharma, a resident of Sector 20, said, “As I entered a local salon here, the barber told me not to worry if the bank puts an ink mark on my finger as he can remove it in less than a minute. He told me there is some percentage of alcohol in the shaving lotions which helps to remove such marks from the fingers.”
Meanwhile, the make-up stores are suggesting buying nail-polish removers to easily rub off the ink mark.
Mahavir Jagdev, in a mail sent to the Hindustan Times said, “On a suggestion of my home guard, I tried rubbing my finger with a damped cloth and it did come off. The guard told me that people indulge in multiple voting by rubbing off the ink mark this way.”