Fresh Gold Amnesty Plan Proposed in India

SEATTLE (Scrap Monster): The Indian Ministry of Finance has proposed a new amnesty program for unreported gold holdings by citizens. The proposal has been forwarded to the Prime Minister’s office, reports said.

Accordingly, the Ministry will provide an opportunity for residents of the country to declare unaccounted holdings of the yellow metal to tax authorities, for which they will have to pay tax to the government. The move is aimed at boosting tax revenue and reducing the country’s dependence on gold imports. The Ministry has sought feedback from concerned officials. A final decision on the matter will be subject to expert opinions.

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Earlier in October 2019, the government had proposed to make people pay high tax of around 30% on gold acquired without a receipt. However, the proposal was not approved, mainly because the government was sceptical about the success of the scheme, as people may not voluntarily declare their holdings by losing nearly one-third of the asset value in taxes. Also, experts had pointed out that many Indian households have huge stashes of gold accumulated by inheritance, for which no receipts will be available.

Meantime, citizens expressed fears of harassment by tax department after declaration of their gold assets. They cited queries raised by the department on sources of income of cash deposits during the time of demonetization.