The Finance Ministry on Thursday has given clarity on holding gold or Jewellery. Government mentioned that there would be no Gold tax or Jewellery tax if you show the proper documents or explain the source of income, including from inheritance.
Modifications to Income Tax laws, Government Shutdown the rumors on gold holdings and the ministry came out with a statement that 85 percent tax in the new taxation law bill would not apply to official gold holding, including those attained through legacy or agricultural income. However, later the Finance Ministry stated that there would be no Gold Tax or limit on Jewellery if you show the proper sources of revenue.
The Government said, “Jewellery and ornaments to the range of 500gms for married women, 250 gms for an unmarried woman and 100 gms for a male person will not be seized if you doesn’t show the known income.”
The bill which is currently under consideration of the Rajya Sabha will revise section 115BBE of the income tax act to provide for a sudden 60 percent tax and 25 percent surcharge on it for black money holders.
It said that the tax rate under section 115BBE is planned to be increased only for unexplained income sources as they were reports that tax evaders are trying to include unknown income sources as business income or income from other sources in their tax returns. So, the section 115BBBE mainly apply for those who will not explain proper sources of revenue or hide it as unsupported business income.
All You Need to Know the below things about Gold Tax or Jewellery tax
- In case of Known Source
There is no limit on holding of Jewellery or ornaments by anybody those who provided known income sources, including legacy and Agriculture incomes.
- In Case of Disclosed Source
There is no seize of gold to the extent of 500 gms per married woman, 250 gms per unmarried woman and 100 gms per male person.
- Other Proposal
During the search and seize operations, in case of any black money, the government has proposed a sudden tax and penalty up to 85 percent.