Purchases above Rs 6 lakh will be reported govt by the retailers

Purchases above Rs 6 lakh will have to be reported to the Financial Intelligence Unit (FIU) by the retailers, said a government official working on the proposal targeted at preventing money laundering.

Jewellery and luxury goods will be considered mainly under this.

"Globally, in most countries, the limit for reporting such transactions is set at $10,000," added the government official who spoke on condition of anonymity.

"Discussions are on to decide the limit, with consensus veering around Rs6 lakh."

Apart from helping government agencies such as the Enforcement Directorate detect money laundering (when this information is used along with other information), these reports could also help the income-tax department identify individuals whose purchases are disproportionate to their known sources of income.