This news will make you happy or sad depends on the source of your income. According to the Budget 2017-18, TCS (tax collected at source) will be applied to the purchase of jewellery items, i.e. you have to pay one percent TCS, if you purchase the jewellery using cash. This is applicable on the purchase of above Rs 2 Lakh in cash.
The current threshold amount is Rs 5 Lakh, but once the Finance Bill 2017 is passed, the amount will be Rs 2 Lakh. From April the jewellery will be treated on par with general goods and will attract 1 percent TCS.
The Budget 2017-18 has advocated for the ban of cash dealings on the amount of above Rs 3 Lakh. If any violations occur, then the person who is receiving the amount will be punished and penalty is to be paid, which is equal to the amount received.
No special provision is mentioned regarding TCS, thus, jewellery is added into the category of general goods only. Number of transactions doesn’t matter, even a single transaction that exceeds Rs 2 Lakh in cash will be counted as a violation.
Under the Income Tax Act you can find that, there is a one percent TCS provided on the cash purchase of goods or any services above Rs 2 lakh. Jewellery is included in the goods only and thus one percent TCS is applicable on the purchase of jewellery items which amounts above Rs 2 Lakh in cash.
This fact is confirmed by an official.
This step will bring the TCS threshold for jewellery at par and will prevent any illegal transaction and purchase of general goods.
Earlier, the Tax Department was imposing a percent TCS on the cash purchase of bullion, which exceeds the amount of Rs 2 Lakh and jewellery, which exceeds the amount of Rs 5 Lakh, since July 1, 2012.
Conclusion:
The new budget will bring benefits to all, the citizens, the Government and the country as whole. We must respect all these laws and try to follow them in a strict manner. Black Money is a hazard for all of us, so it’s better not be the one who is a black sheep for India, rather immediately report, if you find anyone violating the laws.
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