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  • Govt. dispels rumors on new jewelry tax

    December 02, 2016

    The finance ministry said on Thursday that there is no limit on holding of gold jewellery by anybody provided it is acquired from explained sources of income, including inheritance.

    Jewellery up to 500 grams for a married woman, 250 grams for unmarried women and 100 grams for a male member will not be seized, even if, prima facie, it does not seem to match the income record of the assessee, the ministry said. The officer conducting the search has the discretion not to seize gold jewellery that exceeds the limit based on certain factors, including family customs and traditions. The finance ministry issu ed a clarification on Thursday amid rumours that all gold jewellery , including ancestral jewellery , shall be taxed at 75% plus cess, with a further penalty liability of 10% of tax payable. The rumours started after the Taxation Laws (Second Amendment) Bill, 2016 was passed by the Lok Sabha.The bill is currently under the Rajya Sabha's consideration.

    “It is clarified that the jewellerygold purchased out of disclosed income or out of exempted income, like agricultural income or out of reasonable household savings or legally inherited, which has been acquired out of explained sources, is neither chargeable to tax under the existing provisions nor under the proposed amended provisions,“ the ministry said.

    It said that the apprehension sought to be created that jewellery with a household which is acquired out of disclosed sources or exempted inco me shall become taxable under the proposed amendment is totally unfounded and baseless.

    The ministry said the bill has not introduced any new provision regarding tax on jewellery . It only seeks to enhance the applicable tax rate under Section 115BBE of the Income Tax Act from the existing 30% to 60%, plus surcharge of 25%.

    OUR TAKE

    The government has been taking ssteps to tackle the black money and therefore is taking all the necessary steps. Be it gold, cash or even the properties, the government is cracking down on the dishonest. This being said, an honest citizzen will never be troubled by the government in any circumstance whatsoever. So if you've been honest, do not worry. But if you'vve been up to some mischief, here comes the government!


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