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No Tax on Gold purchased from Disclosed Income

By:  Tupaki Desk   |   1 Dec 2016 3:57 PM GMT
No Tax on Gold purchased from Disclosed Income
Amendments to the Income Tax Act began worrying people due to the strong buzz that tax would be levied on gold biscuits and ornaments as well.

The Central Board of Direct Taxes (CBDT) issued a clarification saying Government hasn't introduced any new provision for levying tax of jewellery. It further added, 'Gold or Jewellery purchased from disclosed income, agricultural income, reasonable household savings and legally inherited aren't chargeable to tax under the current law'.

CBDT mentions, 'If Income Tax Department conducts raids, There won't be any seizure of jewellery and ornaments up to 500 grams per married women, 250 grams per unmarried women and 100 grams per male'.

Centre clearly mentions there is no problem for those people who purchased gold from disclosed income irrespective of the quantity.