Why is There Panic Among Jewellers, Gold Traders

The gold and jewellery traders in the country are in a state of shock what with the Government asking them to furnish the details of the transactions they did on the night when the demonetisation was announced. A large number of people made panic purchase of gold to escape the demonetisation drive. Notices were served on over 15000 jewellers across the country and several big names figure in this list. The Central government intends to collect Rs 50000 crore from those who evaded taxes by entering into illicit transactions.

On the night the demonetisation was announced, the gold shops did brisk business and the amounts accrued were almost equal to a month's cumulative earning. In several shops, the whole stock disappeared in no time. Now, the government wants the details of those transactions and the jewellers are in a state of quandary. They know that they have to shell out huge amounts towards taxes and if they seek to challenge the notices served on them, they would have to deposit at least 20 per cent of the tax amount. If they lose the case, they have to pay the whole tax amount, which would only mean that many jewellers may very well have to pull down the shutters on their businesses.

Many jewellers are spending sleepless nights over this and are worried about the legal wrangles that they may have to endure if cases are filed against him for evading tax.
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