In an attempt to prevent black money hoarding, the government is mulling an amnesty scheme for gold. According to the new scheme, gold without receipt will have to be disclosed to the government and tax would be payable based on the rate set by the government.
Similar to the income tax amnesty scheme, the gold amnesty scheme will reportedly be open for a definite time period and people caught with gold without proper bills will have to pay heavy tax. The tax will have to be paid on entire value of gold declared by an individual that has been purchased without any receipt.
While the final picture is yet to emerge, sources indicated that the government might be considering 30 per cent interest rate, with an effective rate of around 33 per cent, including education cess.
The new gold amnesty scheme is the latest move by the government to bring back hordes of black money used in buying the yellow metal considered a safe investment option in India. After demonetisation of 2016, this will be the second major measure by the government to curb black economy.
Reports added that the new scheme is part of the comprehensive gold policy that the government is working on as per think-tank Niti Aayog's suggestions two years ago.
