1% tax on cash purchase of gold jewellery rolled back
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1% tax on gold jewellery purchase rolled back

The charge called tax collection at source  (TCS) is collected by the seller from the buyer and deposited to the government.  The person from whom TCS is collected can claim credit for the same amount in his income tax return.

BT Online   
  • May 31, 2016  
  • |  
  • UPDATED   14:07 IST

In a move that will benefit jewellers and lakhs of customers, the government has  rolled back 1 per cent tax on cash purchase of gold jewellery of Rs 2 lakh and above and raised the limit to the earlier Rs 5 lakh with effect from June 1.

The charge called tax collection at source  (TCS) is collected by the seller from the buyer and deposited to the government.  The person from whom TCS is collected can claim credit for the same amount in his income tax return.

The move is expected to revive the gold demand in the country which hit a seven-year low in the first quarter of 2016.

The government in this year's budget had reduced the threshold of the TCS to Rs 2 lakh from Rs 5 lakh.