Amended I-T Act exempts jewellery/gold purchased out of disclosed income

The Amended I-T Act will also not apply to tax ancestral jewellery and gold.

Post By : IJ News Service On 01 December 2016 4:25 PM

The Ministry of Finance, on December 1 said that the Amended I-T Act will not apply to tax jewellery/ gold purchased out of disclosed income or exempted income or reasonable household savings.

The Amended I-T Act will also not apply to tax ancestral jewellery and gold, the ministry said.

"There will be no seizure of gold jewellery up to 500 gm per married lady, 250 gm per unmarried lady and 100 gm per male in I-T searches," the finance ministry said in a statement.

“The Bill only seeks to enhance the applicable tax rate under section 115BBE of the Income-tax Act, 1961 (the Act) from existing 30 per cent to 60 per cent plus surcharge of 25 per cent and cess thereon. This section only provides rate of tax to be charged in case of unexplained investment in assets,” the statement said.

Further, the government also made reference to instruction No.1916 that provides that during 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.

The Lok Sabha on November 29 passed the Taxation Laws (2nd Amendment) Bill, 2016 that seeks to tax money deposited in banks post demonetization.

Last month, the government had clarified that it was not considering any proposal to restrict holding of gold by individuals.

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