CLARIFICATION
ON AMENDMENT TO SECTION 206-C OF INCOME TAX ACT ON SALE OF BULLION OR JEWELLERY
IN CASH
Press Release
Date: 1/05/2013
Currently, sale in cash of bullion (excluding coin or any other
article weighing 10 grams or less) in excess of Rs 2 lakh or jewellery in
excess of Rs.5 lakh is subject to Tax Collection at Source (TCS) @ 1%. As coins
were neither included in bullion nor in jewellery, therefore, coins, even when
amounting to more than Rs. 2 lakh in value, were being sold in cash without
TCS.
The Finance Bill, 2013
proposes to delete exclusion of coins/articles weighing 10 grams or less
from bullion. Hence, the sale of bullion (including coins/articles) in cash in excess
of Rs 2 lakh shall be subject to TCS @1%. Similarly, sale of jewellery in cash
in excess of Rs 5 lakh shall be subject to TCS @1%.
It is not a new levy of tax but continuation of old levy except
withdrawal of exemption in the case of coins/articles weighing 10 grams or
less.
Regards
CA. Mona Singhal
Partner
Arpit Gupta & Associates
Chartered Accountants
701, Nirmal Tower,
26, Barakhamba Road,
Connaught Place, Delhi-110001
Mobile:- +91-9873082769
Website: www.caaga.co.in
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