Government has no plan to impose tax on gold jewellery of women

Nainital: Dispelling fears of government action on gold hoarding or jewellery belonging to households, Union Minister Ravi Shankar Prasad, on Tuesday, said that government is not considering any plan to impose tax on jewellery of women.

"Income tax wouldn't be imposed on farmers, neither is there any plan to impose tax on jewellery. All sorts of rumours are being spread to mislead people. But they should pay no attention to the rumours," the Union Law and IT Minister said.

"We are moving towards a cashless economy under the leadership of Modi and demonetisation is a step in that direction,"Prasad siad during BJPs Parvirtan rally on Monday.

Last wee, the Central Board of Direct Taxes (CBDT) also said that government had not introduced any new provision regarding chargeability of tax on jewellery.

"The jewellery/gold purchased out of disclosed income or out of exempted income like agricultural income or out of reasonable household savings or legally inherited which has been acquired out of explained sources is neither chargeable to tax under the existing provisions nor under the proposed amended provisions," said the CBDT statement, dispelling all rumours around probable tax on gold.