New Delhi, December 1: In a yet another face-off to clarify central government’s move to fight black money, the Central Board of Direct Taxes on Thursday clarified the permissible range of gold inheritance for married women, unmarried females and the male folks.
This time, the government spoke to elucidate the proposed Taxation Laws (Second Amendment) Bill, 2016 which is under consideration in Rajya Sabha. On Tuesday the bill was passed on voice vote in Lok Sabha amid huge ruckus over demonetisation in Parliament. The amendments proposed by opposition were rejected and the house was adjourned without a debate.
The CBDT said: During the search operations, no seizure of gold jewellery and ornaments to the extent of 500 grams per married lady, 250 grams per unmarried lady and 100 grams per male member of the family shall be made. Further, legitimate holding of jewellery up to any extent is fully protected.
The government further said that the jewellery or gold purchased out of disclosed income or tax exempted income such as agricultural income shall not be questioned. It also added that gold obtained out of reasonable household savings or legally inherited or acquired will not be taxed and does not come under the proposed amended provisions.
The CBDT clarified that the proposed amendment doesn’t introduce any “new provision” regarding “chargeability” of tax on jewellery and rubbished rumours regarding seizure of gold and jewelery inherited from informed income sources.
The government reiterated that the new bill primarily seeks to enhance the applicable tax rate under section 115BBE of the Income-tax Act, 1961 (the Act) from existing 30% to 60% plus surcharge of 25% and cess thereon.
Only in case of unexplained investment in assets, the tax cap will be imposed. The chargeability of these assets is governed by the provisions of section 69, 69A & 69B which are part of the Act since 1960s.
Although the statement from the finance ministry shall offer complete respite to public who was grindding everyday for cash crunch, provided the tax hoarders do not find o