10 things to know about the new I-T laws act in INDIA

The amendments to the I-T laws have not introduced any new provision regarding the rate of tax on jewellery, the government said today. Here's what you need to know about the changes to the Taxation Laws (Second Amendment) Bill.

1. The Lok Sabha recently passed the Taxation Laws (Second Amendment) Bill, which proposes up to 85 per cent tax and penalty on undisclosed wealth discovered by tax authorities.

2. This led to fears and speculation that gold jewellery including ancestral jewellery shall be taxed at 75 per cent or more with a further penalty of 10 per cent of tax payable.

3. Today, the Central Board of Direct Taxes (CBDT) clarified the amended Bill has introduced no new provision to tax inherited gold and jewellery.

4. The Bill only raises applicable tax rate under section 115BBE, which provides rate of tax to be charged in case of unexplained investment in assets.

5. The amendment has proposed to hike applicable tax rate from the existing 30 per cent to 60 per cent, with an additional 25 per cent surcharge in case of unexplained income.

6. Another section provides for an additional 10 per cent penalty on being established that the undeclared wealth is unaccounted or black money.

7. During search operations conducted by I-T Department, there would be no seizure of gold jewellery and ornaments to the extent of 500 grams per married women.

8. In the case of unmarried women, gold jewellery upto 250 grams is permitted. For a male family member, it is 100 grams.

9. CBDT also said that legitimate holding of jewellery upto any extent is fully protected.

10. The provisions of section 115BBE apply mainly in those cases where assets or cash are sought to be declared as 'unexplained cash or asset' or where it is hidden as unsubstantiated business income, and the Assessing Officer detects it as such.