No tax on ancestral jewellery!, purchase from disclosed income!

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Amendments to the I-T laws do not seek to tax inherited gold and jewellery as also those items that are purchased through disclosed or agriculture income, the government said on Thursday.

The Lok Sabha earlier this week passed the Taxation Laws (Second Amendment) Bill, which proposes a steep up to 85 per cent tax and penalty on undisclosed wealth that is discovered by tax authorities during search and seizure.

 

 

 

 

Dispelling rumours that jewellery would be covered under the amended law, the cbst said the government has not introduced any new provision regarding chargeability of tax on jewellery.

"The jewellery gold  purchased out of disclosed income or out of exempted income like agricultural income or out of reasonable household savings or legally inherited which has been acquired out of explained sources is neither chargeable to tax under the existing provisions nor under the proposed amended provisions," the CBDT said..

 

 

 

During search operations, conducted by I-T department, there would be no seizure of  gold jeweelary and ornaments to the extent of 500 grams per married women, 250gm per unmarried women as also 100gm per male member of the family, it said.

"Further, legitimate holding of jewellery up to any extent is fully protected," it added...

 

 

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