Gold Tax- How much tax for Gold/Jewellery?
People are more confused about the Gold tax due to the new rumors around Facebook and whatsapp. This article will clear your doubts.
How much gold can i have?
500 gm per married lady, 250 gm per unmarried lady and 100 gm per male member of a family.
Even if the gold does not match one’s known income, “jewellery and ornaments to the extent of 500 gm for married lady, 250 gm for unmarried lady and 100 gm for male member will not be seized,” the government said, producing portions of the 1995 law.
It means you can have the gold even without proof upto the allowed limit.They have no right to seize.
Is this limit is new rule of Prime Minister Modi?
The answer is No.
It is hereby clarified that the above Bill has not introduced any new provision regarding chargeability of tax on jewellery.
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 chargeability of these assets as income is governed by the provisions of section 69, 69A & 69B which are part of the Act since 1960s.
Then what is new bill passed by the Indian government?
The bill has been passed to change the tax percentage of gold from existing 30 per cent to 60 per cent plus surcharge of 25 per cent and cess thereon.
This tax is applicable for the peoples those who have brought the jewellery in unshown income.
What will be the problem if i have more than this allowed grams?
There is no problem if you have more then the limit on holding of gold Jewellery or ornaments,If you purchased in the declared source of income including declared inheritance.
No tax on gold or jewellery bought from disclosed income
What if i have purchased the gold more than the allowed limit in undeclared income?
The Lok Sabha earlier this week passed the Taxation Laws (Second Amendment) Bill.which proposes steep tax,penalty of up to 85 per cent on undisclosed wealth discovered by tax authorities during search and seizure.
No tax on gold or jewellery bought from disclosed income.Even if it is above 1000 grams.