No tax on ancestral gold; other exemptions clarified too

Last Updated: Thu, Dec 01, 2016 17:44 hrs

The Finance Ministry has clarified that the new taxation provisions to combat black money won't target household jewellery, the Press Trust of India reported on Thursday.

A press release said the new income tax laws will not be binding on ancestral jewellery and gold bought using disclosed income.

There will also be no seizure by the IT department of gold jewellery up to 500 gm for a married lady, 250 gm for a unmarried lady and 100 gm for a male, it was clarified.

"A reference to instruction No 1916 is also invited which provides that 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," a Finance Ministry release here said.

"Further, legitimate holding of jewellery up to any extent is fully protected," it said.

The government clarification comes in response to apprehensions arising from the amendments to the tax laws proposed through the Taxation Laws (Second Amendment) Bill, 2016, passed earlier this week by the Lok Sabha to deal with the situation arising out of the November 8 demonetisation measure.

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