Don’t be misled by rumours, says Govt as it clarifies exemption limits for gold seizure
New Delhi: The Government on Thursday denied any move to levy 85% tax on gold jewellery, including the ancestral one acquired through inheritance under the Taxation Laws Bill passed by the Lok Sabha on Tuesday as “totally unfounded and baseless.”
It clarified that the Bill has not introduced any new provision regarding chargeability of tax on jewellery, urging the people not to be misled by such rumours.
The jewellery/gold purchased out of disclosed income, from agricultural income or out of reasonable household savings or legally inherited is neither chargeable to tax under the existing laws nor under the new Bill, the Finance Ministry said in a press note. It said the legitimate hold of jewellery up to any extent is fully protected.
To clarify further, it quoted Instructions No 1916 that during the search operations, no seizure of gold jewellery and ornaments to the extent of 500 grams per married lady, 250 grams per unmarried lady and 100 grams per male member of the family shall be made.
It said the new Bill to raise the income tax from the highest 30% to 60% plus surcharge and cess of 25% pertains to only the unexplained investments in the assets. It said this harsh provision is only to deal with the tax evaders trying to include their undisclosed income in the return of income as business income or income from other sources.
The provisions of section 115 BBE in the Bill shall apply mainly to those cases where assets or cash etc. are sought to be declared as ”unexplained cash or asset” or where it is hidden as unsubstantiated business income, and the Assessing Officer detects it as such, the press note added.