Seeking to quell apprehensions based on rumours, the government on Thursday said that there is no limit on legitimate holding of gold and jewellery, including from inheritance, and there would be no seizure of bullion up to a certain limit even if that does not seem to match the income. As rumours of government crack down on gold holdings raged, the ministry first came out with a statement saying the steeper up to 85 per cent tax in the new Taxation Laws Amendment Bill will not apply to legitimate gold holding. “Jewellery and ornaments to the extent of 500 gms for married woman, 250 gms for unmarried woman and 100 gm for male member will not be seized, even if prima facie, it does not seem to be matching with the income record of the assessee,” it said in the second statement.
There is no limit on holding of gold jewellery provided it is acquired from explained sources of income including inheritance. Earlier on Monday, providing yet another opportunity to black money holders to legalise their wealth, the Union government proposed to tax 50 per cent unaccounted demonetised cash that is disclosed voluntarily till December 30, after which a steep tax and penalty, up to 85 per cent, will be levied on undisclosed wealth that is discovered by authorities.
Meanwhile, contending that large volumes of liquid cash are a big source of corruption and black money, Prime Minister Narendra Modi on Friday appealed to the people to “lead the change” towards cashless transactions to lay the strong foundations of an India where there is no place for such malaise.
DC take
Soon it will be a month after Prime Minister Narendra Modi made the shock announcement of demonetising Rs 500 and Rs 1,000 notes. However, still the situation is far from being normal. People are still queuing up at banks and outside ATMs nation-wide to withdraw money. Despite government’s best efforts to control the situation, there is not much of a respite in reality. Meanwhile, though the government has made it amply clear that there is not going to be a rollback, petty politics arguably over one of the most important economic reforms India has seen, continues.
Political parties of all hues have failed not only to provide relief to the people but also to come up with concrete opposition to the plan. It seems most of the opposition is for the sake of opposition. However, the government has done a yeoman service to the already hassled people by clarifying its stand on gold possessions. Now everybody knows what will happen if they have bought gold from ill-gotten money. And as the Prime Minister has made it clear time and again, the aam aadmi has nothing to worry.
