Gold Jewellery Holding Legal Limits | Income Tax on Gold
After the bold decision of banning higher currency notes of Rs.500 and Rs.1000, the central government of India, proposing various strong measures over the black money holders on daily basis. Recently, government has announced the gold restriction awareness among the fellow Indian citizens, though; the restriction is been in active for long period, many not aware about it.
Announcement from Government
Recently, the central government of India has introduced some amendments in I-T Laws. With the new amendments government can now able to implement high taxes for the inherited the amount gold and jewels above the restricted limits which are purchased with the undisclosed incomes or agriculture incomes by the Indian citizens.
Why restriction for Gold/Jewels?
India, the most importer of Gold in world, from ancient time people of India used to save their hard earned money form of gold. As tradition, Indians follows the same till now, owing to that Indians own around 75% of gold which are driven from the earth.
|S.No||Interesting Facts about Gold Consumption in India||Detailed Information|
|1||India’s Position in Gold Consumption in world||First|
|2||Approximate amount of gold held privately in India||22,000 tonnes|
|3||Estimated values of import of gold in 2015 April||Rs. 19, 645 Crore|
|4||India’s private gold enough to fill||3 Eiffel Towers|
In India, next to petrol, the gold enjoys the second place when it comes to imports and the number of demands in recent years has been increased dramatically. Owing to that, Indian economy facing its hard time to make ends meet mutually. Also the import levels keep on increasing when compared with the amount of exports which is not good for any countries economy.
Gold Restrictions in India
On accounting the problem prevails due to high number of imports, government of India has introduced the threshold limit for Indian to have golds the restricted amount follows in the below listed table.
|Limits for Gold/jewels owned unmarried Women||250gms|
|Limits for Gold/jewels owned by married women||500 gms|
|Limits for Gold/jewels owned by men||100 gms|
All the above mentioned limits are not comes under the calculation, however, if the amount of gold/jewels goes beyond the limits than proper proof must be owned by the owners on purchasing the extra limits with the disclosed incomes.
This allows the families of India can own any limit of golds/jewels with the proper purchase by the disclosed income to tax department. Also for families which are owning the prescribed limit of 500 gms for married women, 250 gms for unmarried women and 100 gms for men won’t be in calculative by the IT officials during any sort of raids and so.
New amendments in I-T Laws
- Recently, the central government of India has passed the new second amendment bill in lok sabha, which states government can able to steep tax amount up to 85% for the undisclosed money by the Indian Citizens. Experts all across the nation, welcomes the act of government which makes strong actions against the black money holders across the country.
- Also, government on 01st of December 2016 made some slight changes in taxation for Gold/Jewels above the limits and purchased from the undisclosed incomes which are owned by the Indian Citizens across the nation.
- Earlier, it was 30% government officials able to charge as tax amount for the total amount of gold seized from undisclosed incomes, now with the new amendments income tax officials able to levy 60% for tax amount for the Gold/Jewels beyond the prescribed limits which are purchased with the undisclosed incomes.
It is believed that, IT department will raid the owners of bank accounts which witnessed high number of transactions after the demonization of higher valued Indian currency notes from 8th of November of 2016.
The new amendment bill for gold/jewels will not affect people who purchased the golds and jewels with their disclosed incomes and from the income of agriculture.