New Delhi: In order to remove any doubt about the current position of Income Tax Law with respect to gold jewellery and ornaments, the following points are hereby categorically clarified by the government:
-There is no limit on holding of gold jewellery or ornaments by anybody provided it is acquired from explained sources of income including inheritance
Govt clarifies jewellery/gold purchased out of disclosed income or exempted income or reasonable household savings is NOT chargeable to tax
— Ministry of Finance (@FinMinIndia) December 1, 2016
-Jewellery and ornaments to the extent of 500 grams for married lady, 250 grams for unmarried lady and 100 grams for male member will not be seized, even if prima facie, it does not seem to be matching with the income record of the assesse.
-Officer conducting search has discretion not to seize even higher quantity of gold jewellery based on factors including family customs and traditions.
The Taxation Laws (Second Amendment) Bill, which is currently under consideration of the Rajya Sabha, will amend Section 115BBE of the Income Tax Act to provide for a steep 60 percent tax and a 25 percent surcharge on it (total 75 percent) for black money holders.
Another section inserted provides for an additional 10 percent penalty on being established that the undeclared wealth is unaccounted or black money, taking the total incidence of levies to 85 percent.