Current Budget had the provision of the duty increment and duty on non branded as well
- Jewelers will have to pay 4% import duty on gold, earlier they had to pay only 2%.
- Aam-Aadmi will have to pay 1 percent excise duty on non-branded gold jewelry
- If Aam-Aadmi purchases jewelry worth more than 2 lakh rupees, the Jeweler will have to collect 1% tax from him in TDS
Main motive is to provide the enhanced tax revenue from the increasing consumption part of the Economy
India's consumption of gold has increased our import by a large factor in last 12 months around 1 million kg of gold imported worth 2 lakh crore Rs , this tend to increase trade deficit and also depreciating the rupee in the world market.
In addition to the above, government is also worried about the sudden disproportionate surge in the investments being done in Gold by the small investor, often at the cost of other saving and investment avenues like bank deposits, saving certificates,post office savings, provident funds and, as also, the capital market. In fact the changes in the gold tarrif should be seen along with three important announcements that the finance minister did, mamely,the launch of Rajeev Gandhi Equity saving scheme and tax free infra bonds and allowing deductions in respect of inetrest on deposits in saving account, to get the larger picture.
Thus in my humble opinion this view should also be taken into view
In addition to the above, government is also worried about the sudden disproportionate surge in the investments being done in Gold by the small investor, often at the cost of other saving and investment avenues like bank deposits, saving certificates,post office savings, provident funds and, as also, the capital market. In fact the changes in the gold tarrif should be seen along with three important announcements that the finance minister did, mamely,the launch of Rajeev Gandhi Equity saving scheme and tax free infra bonds and allowing deductions in respect of inetrest on deposits in saving account, to get the larger picture.
Thus in my humble opinion this view should also be taken into view
In addition to the above, government is also worried about the sudden disproportionate surge in the investments being done in Gold by the small investor, often at the cost of other saving and investment avenues like bank deposits, saving certificates,post office savings, provident funds and, as also, the capital market.
ReplyDeleteIn fact the changes in the gold tarrif should be seen along with three important announcements that the finance minister did, mamely,the launch of Rajeev Gandhi Equity saving scheme and tax free infra bonds and allowing deductions in respect of inetrest on deposits in saving account, to get the larger picture.
Thus in my humble opinion this view should also be taken into view.