The Government has raised the threshold limit for Tax collection at source (TCS) on cash purchases of jewelry from Rs. 200,000 that was proposed in budget 2012 to Rs. 500,000 now. In order to curb the black money from the Gold and jewelry market, the Finance Minister had earlier proposed TCS by the seller at the rate of 1% of the sale amount of all the cash transactions exceeding Rs. 2,00,000 from the buyer .

However, the threshold limit for cash purchase on Bullion shall be Rs. 2,00,000. Bullion for this purpose will not include any coin or any other article weighing 10 gm or less.

The Government has also decided to roll back the earlier proposed 1% excise duty on unbranded jewelery and 1% that is already imposed on branded jewelry with effect from March 17, 2012, the day the proposal was made in the Indian Budget.

The Government has also left unchanged a proposal to double the import tax on gold from 2% to 4%.

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