Planning to buy gold? Here's why you should buy it before April 1
Once the Finance Bill 2017 is passed, jewellery will be treated on par with general goods.
Gold holds a special place in every Indian's heart. From considering it as an auspicious metal to providing financial support during difficult times, gold plays an important role.
But, now buying physical gold will come with come with extra cost.
Cash purchases of jewellery will attract 1% TCS (tax collected at source) from April 1 if the amount exceeds Rs 2 lakh, as against the current threshold of Rs 5 lakh.
Once the Finance Bill 2017 is passed, jewellery will be treated on par with general goods which attract 1% TCS on cash purchase of above Rs 2 lakh, as reported by PTI.
The Bill seeks to do away with the threshold of Rs 5 lakh on jewellery purchases for applicability of TCS because the Union Budget 2017-18 has proposed to ban cash dealings of over Rs 3 lakh and make violations punishable with a penalty of an equivalent amount to be paid by person receiving the cash, the report said.
However, as there is no special provision for TCS on its purchase, jewellery is now being clubbed in general 'goods' on which 1% TCS is triggered if a single transaction exceeds Rs 2 lakh in cash.