BrahMos WORLD INDIA MADHYA PRADESH BHOPAL WTN SPECIAL Astrology GOSSIP CORNER SPORTS BUSINESS FUN FACTS ENTERTAINMENT LIFESTYLE TRAVEL ART & LITERATURE SCIENCE & TECHNOLOGY HEALTH EDUCATION DIASPORA OPINION & INTERVIEW RECIPES DRINKS FUNNY VIDEOS VIRAL ON WEB PICTURE STORIES
WTN HINDI ABOUT US PRIVACY POLICY SITEMAP CONTACT US
logo
Breaking News

If you violate rules of keeping and purchasing of gold, then you have to pay a heavy penalty

Tuesday - December 17, 2019 11:34 am , Category : BUSINESS
Some rules to keep and buy gold
Some rules to keep and buy gold

Do not make these mistakes in the case of gold! 

DEC 17 (WTN) - How much Indian people love gold is not hidden from anybody. Gold has been the first choice and weakness of Indian women for centuries. The craze for gold jewelry is also no less among Indian women. According to the information, the annual gold consumption in India is 849 metric tons, which is the highest in the world after China. In fact, gold is so much demanded in India because gold is considered the most favorable for economic security in times of trouble so that the economic needs can be met through gold.

From investment to gifts and buying from festivals to weddings, buying of gold is very much in India. But do you know that there are some rules for keeping gold in the house? If you violate these rules, you may get a notice of the income tax department and you can also face a penalty. What are the rules for keeping, selling and buying gold? Let’s tell you.

According to the rules, there is no limit to keeping gold in the house, and any person can keep any amount of gold or gold ornaments in the house. But if you have gold in the house, then you have to tell the source of its receipt. On the other hand, if you have bought gold, then it is very important to have a firm bill of purchase. If the Income Tax department asks for information on gold or its jewelry kept at home and you cannot tell the source of acquiring gold or if you do not have a sure purchase bill, you may be in trouble. During the investigation, if the Income Tax Department feels that a person has more gold than his/her financial capacity and he/she has not got it in the gold gift nor hereditary, then the Income Tax Department can seize unbilled and no sourced gold.

At the same time, for your information, let us know that if the annual income exceeds Rs 50 lakh, it is necessary to give the information about the price of gold kept in the home in the income tax return. It is important to mention the value of gold in the option of assets and liability while filing income tax returns. In one of its circulars, the Income Tax Department has clearly clarified that if a house is scrutinized and gold is found, there are some limitations of keeping gold in the house. According to the rules, married women are allowed to keep 500 grams of gold while unmarried women can keep 250 grams of gold with them. At the same time, there is an exemption for men to keep only 100 grams of gold with them. But if there is more gold than this, it is mandatory to tell the source of buying or then acquiring gold.

On the other hand, if you sell it within three years of buying gold or gold jewelry, then the benefit of selling gold comes under short-term capital gains tax. However, it is not calculated separately. Short term capital gains tax is added to the income from all your sources. On the other hand, if you sell it after three years of buying gold, in such a situation you have to pay long term capital gains tax. For your information, let us know that you cannot get any relief in short term capital gains tax, but long term capital gains tax can be exempt under certain rules.

For your information, let us know that from 15 January 2021; gold, gold jewelry, and gold artifacts cannot be sold in India without BIS hallmarking. It means hallmarking is becoming mandatory in India from this date. If a jeweler ignores the rules after BIS hallmarking becomes mandatory, he could face a fine of one lakh rupees and be sentenced to one year. At the same time, a provision has been made to pay up to five times the price of gold as a penalty.