Government’s Battle Against Black-money? Next Step: Gold Jewellery Holding Restricted under IT Rules

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It seems that Government of India is now bent upon unearthing Black-money with the help of existing laws and by introducing amendments in law, whereas the giants of the Black-money are trying to find ways and means to convert theirs from one form to the other.

It has been reported that import of Gold was maximum in the month of November, 2016. Till the end of November, 2016 during the current financial year approximately 500 Tons of Gold was imported and out of which 100 tons was imported  in the month of November only. Observing all these developments, from the unconfirmed sources, it is known that more and more people purchased gold during this month at rates much higher than the official rates of gold, after the currency notes of Rs.1000 & Rs.500 were demonetized.

The jewellery purchased out of genuine household savings, out of disclosed income, exempted income like agricultural income, and ancestral holding of gold shall not attract any tax, but during the search operations if search officials find gold holdings more than the following:

  • Ancestral holding shall not attract any tax but one shall have to be very sure in proving.
  • A married lady shall have to limit a holding of 500 grams of gold jewellery or otherwise.
  • An unmarried lady can have 250 grams of gold jewellery or otherwise
  • A male individual may keep 100 grams of gold jewellery or otherwise.

Any holding more than the above limit may be considered as unaccounted holding and shall be treated as provided for in the Income Tax Amendment (2nd Amendment) Act 2016, 85% (75% tax and 10% penalty) shall be charged on the same. However, if the gold holding is more than the above limit, has been purchased out of legitimate income and income tax authorities are satisfied with the contention of the holder, then not penalty and no prosecutions etc.

Is this not a battle against Black-money?

When shall the Government act to disclose the Black-money hoarded in the Foreign Banks?


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