Inherited gold not to be taxed
posted on Dec 1, 2016 @ 5:28PM
The Amended I-T Act will also not apply to tax ancestral jewellery and gold, said the finance ministry. 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. The ministry said that the Amended I-T Act will not apply to tax jewellery/ goldpurchased out of disclosed income or exempted income or reasonable household savings. The Central Board of Direct Taxes said, "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". Once the amendments are approved by Parliament, there would be a penalty of 30 percent of unaccounted income, if admitted and taxes are paid. This would take the total incidence of tax and penalty to 60 percent.