Hyderabad, December 2
Alleviating the fear among the public about gold purchases and gold reserves, the Central Finance Minister Arun Jaitley announced that each woman can have gold ornaments weighing 500 gms and unmarried woman can have 250 gms of gold ornaments.
The finance ministry also said that there will be no tax on gold purchased out of disclosed income or exempted income or reasonable household savings. Ancestral jewellery is also exempted from tax.
Following demonetization of Rs. 500 and Rs. 1,000 currency notes, black money holders reportedly purchased gold ornaments on a large scale with the cooperation of gold merchants. The Centre gave a serious warning to the gold shops not to sell gold to customers without Pan card.
The income tax officers conducted raids on gold shops. The gold rates stooped to a six-month low with 10 gm gold trading at Rs. 28,120.