The Finance Bill 2017, which is expected to pass in the Indian Parliament, includes a tax on jewelry exceeding $2,986 bought in cash. All jewelry cash transactions will incur a 1% TCS (tax collected at source) starting April 1, Gem Konnect reports. Currently, only cash sales of jewelry over $7,465 are taxed.
Cash dealings over $4,480 will be punished with a penalty of an equivalent amount to be paid by the person receiving the cash.
According to a government official quoted as in the piece, “The Income Tax Act provides for 1% TCS on cash purchase of goods or services above $2,986. The definition of goods also includes jewelry”. Gold bullion sales already attract a 1% TCS in the country.
