06 July 2012
I heard from some professional that there is a new circular or guideline which says that an individual can't sell jewellery of more than 5 lac.
I'm not aware about any such provision and think it would be illogical.
If any of our professional colleagues here have any knowledge about any such latest amendment please let me know.
06 July 2012
As per Section 206(1C)of Income Tax Act, 1961,Every person, being a seller, who receives any amount in cash as consideration for sale of bullion (excluding any coin or any other article weighing ten grams or less) or jewellery, shall, at the time of receipt of such amount in cash, collect from the buyer, a sum equal to one per cent of sale consideration as income-tax, if such consideration,— (i) for bullion, exceeds two hundred thousand rupees; or (ii) for jewellery, exceeds five hundred thousand rupees.
It means there is no bar on selling of jewelry 5 lakhs or more but if you do so then additional amount @1% is to be collected from the buyer only if you are selling in cash.
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