Still the Jury may be in doubt that whether the demonetisation has benefited the country or not. But the thing is that it has instilled the fear in everyone’s mind. Now many more humorous are spreading over the country, mainly about the gold held by the households. So now the discussion is about the amount of gold that should be held by the individual.
The question arises that whether the government is going to collect tax on gold holding? So, let us take a look on the rules;
Same Tax Law Prevails: After the demonetisation occurred on November 8, 2016 there is no change in the rules about the gold held by the households and the individual person. In the income tax act, there is no change made that whether the gold held by the households will be taxed or not and also there is no seized limit for the amount of gold held by the person. But the changes or the amendments made in the Income Tax Act are only related to the tax which is imposed on the undisclosed income of any individual.
Disclosure of Gold Holdings: Under ‘Schedule AL’ it becomes compulsion for every person whose annual income is more than the Rs50 lakh, has to show all his assets and liabilities to the government. From year 2015-2016 onwards, this schedule was introduced under the income tax return. Here in the above assets means the thing which can be used for then one year like car, building, property etc. These assets should be considered at the original purchased value and disclosure of your assets etc is not required in case if a person’s income is below the Rs.50 lakh annually. A person needs not to file a Wealth Tax Return, as it has been abolished since FY 2015-2016.
Quantum of Gold: India people love to kept High Gold and it is their main hobby also. The person those whole income is low and do not have this much time to spend on luxurious life, so they all use to prefer to buy gold. Rather to spend in fixed deposits. There is tradition to buy gold at the time of wedding occasion in aspect of giving dowry to the brides. But in spite all this here is the question that arises is, whatever the government is going to tax them or not?
But till now the obvious answer is ‘No’.
A person must keep a proper track of his gold purchases in today’s era. The statements which can show these purchases are very genuine that are Retain Bills, Bank etc. Keep a record of gold which you have taken from your parents or ancestors. It is better to keep a record of the names of people who have given you the gold. Simply it means one should keep a proper record of all the gold holdings with their evidences.
Search by the tax departments: During a search, it is found that the new tax rules specify tax rates and penalty on undisclosed income. It is clearly clarified by the tax departments that in the context of these amendments, there will be no capturing of gold up to the limit of 100gms can be held by the male members of the family, up to 250gms of gold held by an unmarried lady and 500gms can be held by the married women of the family. These gold holdings of the person are safe in case of search and seizure. Therefore, through the legitimate means there is no limit on gold holdings or purchases done by the people.