PAN must for gold buys exceeding Rs 2 lakh

Shishir Sinha: BL:15 May 2012

 

Customers will no longer be able to buy gold bars or coins worth more than Rs 2 lakh – even by paying cash – without furnishing an Income-Tax Permanent Account Number (PAN).

That is because it is now mandatory on the part of the seller to collect tax at source on such sales. The buyer's identity – the PAN is treated as the source of identity for this purpose – is mandatory for this.

The Finance Minister, Mr Pranab Mukherjee, while moving the amendments to the Finance Bill 2012, retained the threshold limit for tax collected at source (TCS) on cash purchase of bullion at Rs 2 lakh. However, it was clarified that bullion will not include any coin or other article weighing 10 grams or less.

A senior Finance Ministry official told Business Line, “Such a provision is there to check black money. Accordingly the tax collected at source clause has been added to establish the identity of the person from the income tax regulations' point of view. Here, PAN helps in doing that.”

The tax collected at source norms ask the seller to collect tax at the specified rate from buyers and deposit it with the Government. This is different from Tax Deducted at Source (TDS) where payment is made after deducting tax at specified rate.

Even small jewellery traders or goldsmiths buy bullion worth Rs 2 lakh or more. “If you say that these people will face difficulty, it is not true. These traders are required to have PAN for registration for State levies and for other local regulatory requirements. So, traders doing bullion business without PAN is hard to believe,” the official said.

The Income-Tax Act clearly explains that getting PAN does not mean that one will have to pay tax. It is a tool to establish the financial identity. Similarly, if somebody is paying tax collected at source and his income is less than the threshold for tax, than he can claim refund only if he has PAN. This is the procedure for not just for traders but for any one, the official added.

Though the threshold limit on cash purchase for bullion has been retained as proposed in the Budget, the Finance Minister raised the limit for cash purchase of jewellery to Rs 5 lakh from Rs 2 lakh. Along with these, the Budget also raised the custom duty on gold bars.

All these measures aim not just to check the flow of unaccounted money in the bullion and jewellery trade but also to reduce gold import. Increasing gold import is one of the primary drivers of the rising current account deficit.

Aamir Khan's small-screen debut in Satyamev Jayate a smashing hit; ad rates higher than KBC's

 
17 MAY, 2012, 12.24AM IST, ET BUREAU 


The response to Aamir Khan's small-screen debut has been the subject of breathless speculation, sometimes appearing to exceed the hype around his films.


The verdict is now in, with numbers from TAM Media Research, which were released on Wednesday, seeming to indicate that Khan's debut as a commenter on public affairs has been well received, with the absolute number of viewers exceeding those of the first episode of Kaun Banega Crorepati (KBC), a popular quiz show, in 2011.


The first episode of Khan's show, Satyamev Jayate, which was telecast on May 6, received a Television Viewership Rating (TVR) of 4.09 and was watched by 9 crore people.


The 13-episode programme is being shown across eight channels of Star India, owned by Rupert Murdoch's News Corp, as well as on DD National, the flagship channel of state-owned broadcaster Doordarshan, at 11 am on Sunday. The talk show hosted by Khan, one of the big beasts of Hindi movies, highlights social issues such as female foeticide (the subject of the first show) with the intention of prompting the authorities to act.


According to TAM, a media research agency that specialises in monitoring television viewership, the first episode reached out to Rs 2.67 crore viewers. This, says a channel source, translates to a viewership of 90 million (Rs 9 crore) using extrapolation methods common in the industry.


KBC, hosted by Amitabh Bachchan and telecast on Sony entertainment channel, had a reach of around Rs 7.9 crore, though the comparison is imprecise as it was shown on prime time, which is 9 pm, and only on one channel. It had a TVR of 3.5. Khan followed up the first episode with a highly-publicised meeting with Chief Minister of Rajasthan Ashok Gehlot, urging him to fast-track court cases that followed a sting operation exposing the practice of illegal sex determination in the state.


Khan, new to the TVR game, says it is the absolute number that is important. "For me, I don't relate to ratings. What matters to me are the on-ground changes, the various governments that have reacted, the doctors in Rajasthan who have banded together to explain to their errant colleagues to change. This is what I set out to do and that it can happen on this scale is what thrills me."


Media-buying sources say the ad rates commanded by Satyamev Jayate come to Rs 4 - Rs 5 lakh for a 10-second slot, a premium over KBC Season 5, which got Rs 2.5 - Rs 3 lakh per 10 seconds. Title sponsor Airtel paid a hefty Rs 18 crore, more than Cadbury's title sponsorship for KBC at Rs 16 crore.


Mallikarjun Das, CEO-India at Starcom, attributes this to robust demand. "There is no slump in TV and this programme has delivered. In a fragmented media market, a 4-5 TVR is very good and if the show maintains at 4, its job is done. Besides, a brand backing a show like this gets several benefits and an equity rub-off on the brand as well," he says.


Media planners are divided on the likely response to the remaining 12 episodes.


"I expect the ratings to hold at best, or maybe even drop. It will be very creditable if it ends its run with an average that is higher. This is not just because of the seriousness of the content, but also some of the early curiosity waning and people picking and choosing issues they want to watch in its entirety.


The programme is long and, therefore, sustaining an average rating through its 1.5 hours is also a challenge," says Shubha George, CEO, MEC. Star India CEO Uday Shankar is confident that viewers will continue to watch the show. "It is difficult to predict whether it continues to hold, but no show has been tuned in by so many people," he said.

Loneliness 2012

FC :Aazar AnisMay 16 2012, 2218 hrs IST

Sometimes, around your mid-20s, you get this strange feeling that the entire world wants you to be alone. There are many causes for the same — a recent heartbreak, losing a family member/pet, or just plain-old work pressure. In these situations, one tends to become a reclusive individual — shrugging off friends and family, swearing off on talking and avoiding just about any sort of human contact. 

One takes solace in loneliness, in the company of computer screens, television or a book, but, there is nothing wrong with that.

When my friends initially went through this phase (and some of them still are), it used to annoy me immensely. And, eventually, I would blame myself for them not wanting to talk to me, instead of just giving them some time to be all right. 

Though I’ve always believed that happiness is only real when shared, I’ve begun to accept and understand that sometimes, one shouldn’t fight loneliness.

 It is like quicksand, the harder you try to get out, the more it will sink you in. In the age of social media, such as Twitter, Facebook and countless other websites, people have become lonelier than they used to be. Like strangers to each other, my cousin brother and I, who, mind you, only have a wall between our rooms, communicate via chat on Gmail for little things now! Needless to say, technology has made us quite lazy.

And, perhaps, in such dire times, when technology is always in our face and doesn’t let us be on our own, it is not such a bad idea to take some time off and enjoy silence and peace. We don’t have to take a vacation for that; we can just try and be happy on our own.

 Take a different route to work, read a book by an author we have never read before, visit some place in our own city that we always put off visiting for some reason or the other or go out for lunch or dinner. 

There are many things to do and discover.

 And who knows? You may surprise yourself.