As rumours of government crackdown on gold holdings spread, Union Minister for Information and Broadcasting Venkaiah Naidu hit out against people who were spreading wrong information. Said Naidu to THE WEEK, “The government will not snatch away your gold if it is ancestral, legitimate and is purchased from disclosed income. I request every law-abiding citizen to have faith in the government and not to believe in rumours doing the rounds on gold deposits.”
After the Lok Sabha passed the Taxation Laws (Second Amendment) Bill, rumours spread that gold jewellery in bank accounts and at home would be seized and taxed heavily. But the government was quick to call them baseless. In a statement, the government said that no new provision regarding chargeability of tax on jewellery has been introduced. Read the statement from the finance ministry, “The chargeability of these assets (gold) as income is governed by the provisions of Section 69, 69A and 69B, which are part of the Act since 1960s. The present bill does not seek to amend the provisions of these sections.” It further said, “There is no limit on holding of gold jewellery or ornaments by anybody provided it is acquired from explained sources of income including inheritance.” As per existing rules, gold found during IT raids to the extent of 500 grams (married woman), 250 grams (unmarried woman) and 100 grams (male member) will not be seized.
Said Ananthapadmanabhan, zonal chairman, All India Gem and Jewellery Trade Federation, to THE WEEK, “It is only during an income tax raid that the government would check your gold in bank lockers and see if it matches your income. If it doesn’t match your income, they would seize it and ask you to pay the necessary tax. The government knows that in many states in the country it is part of the custom and traditions to possess gold”
He said that people who pay their taxes regularly and don’t invite any trouble should not worry.
Union Minister for Commerce and Industry Nirmala Sitharaman had recently called for restriction free imports of gold to discourage smuggling. “We will make our presentation. We will see what the finance ministry would want to do,” said Sitharaman.
