After currency notes, govt tighten grip on gold

Photo of woman purchasing gold jewellery.

New Delhi: The government today took another big decision regarding gold after demonetization of currency notes of Rs 500 and Rs 1,000. Now married women can keep only 500 grams gold ornament with them.

Apart from this, the unmarried girl can only store 250 gms of gold and on other hand men were only allowed to keep gold ornaments up to 100 grams.

After government had passed these orders it is important to notice that anyone who will be seen floating these norms will have to face tough punishment.

The Finance Minister Arun Jaitely today said that the amended IT Act will not apply to tax jewellery/gold purchase out of disclosed income or reasonable household svings or exempted income.

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

The finance ministry said in a statement, “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 Lok Sabha on November 29 passed the Taxation Laws (2nd Amendment) Bill, 2016 that seeks to tax money deposited in banks post demonetisation.

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

Interestingly, India is the world’s second biggest gold buyer, and it is expected that one-third of its annual demand of up to 1,000 tonnes is paid for in black money-untaxed funds held in secret by citizens in cash that don’t appear in any official accounts.

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