In a bid to keep a check on big transactions by jewellers, the government has asked them to furnish information on all purchases of jewellery worth more than Rs 5 lakh by the end of January.

Jewellers have been asked by the Income Tax (I-T) department to furnish information like the number of transactions, value of transactions, and mode of payment.  In addition, they have been asked to reveal transaction codes.  The three-page letter sent to jewelers also warned that fines would apply for non-compliance.

In the letter, the I-T department said, "The said information may please be forwarded to the undersigned on or before Jan. 31, failing which levy of penalty will be attracted."

It is the first time that the Indian government has asked jewelers to furnish such information.

Last year, gold created the second-biggest import bill after crude oil.  Over the past couple of years, the government took several measures to curtail imports of the precious yellow metal.  But, such moves also led to increase in smuggling of the metal.

The information sough by the I-T department showed that the government is getting a little concerned about the increasing levels of gold smuggling into the country.