The government is likely to use the data on the amount of gold purchased in the last 11 days to boost its gold monetisation scheme.(Mint)
The government is likely to use the data on the amount of gold purchased in the last 11 days to boost its gold monetisation scheme.(Mint)

Bought gold in last few days? You may have to invest in gold monetisation scheme

The government is likely to use the data on the amount of gold purchased in the last 11 days to boost its gold monetisation scheme.
By Ramsurya Mamidenna | Hindustan Times, Mumbai
UPDATED ON NOV 21, 2016 07:01 PM IST

The government is likely to use the data on the amount of gold purchased in the last 11 days to boost its gold monetisation scheme.

Gold has been the most sought-after commodity to convert idle and unexplained money ever since the government announced the demonetisation move on November 8. Thousands have bought gold using invalid currencies of R500 and R1,000.

According to people aware of the development, the income tax and customs departments are keeping a close watch on such purchases, and could come up with a scheme where the taxpayer would be able to escape penalties by investing a certain part of his gold buys in the monetisation scheme.

Around 5,73 tonnes of the yellow metal have been collected so far since the launch of the gold monetisation scheme on November 5, 2015, said the sources quoted above.

The government is still working out the contours of such a proposal, which could well be part of its second phase to curb black money.

Prime Minister Narendra Modi has already hinted at his next course of action during his recent Goa visit. “I am not going to stop at this. I will expose the history of corruption of 70 years since Independence,” Modi had said, adding that the government will unmask benami property owners.

“The jewellers are able to show these (gold purchases since November 8) as Diwali sales and hence a lot of that money has been regularised,” said one trader who asked not to be named. While an average of 50-70 kilogrammes were converted in the initial days, the amount has since increased with one Mumbai jeweller selling more than 200 kgs in a single day.

Customs officials are already tracking sales of around 500 jewellers in the country. The black market rate for such gold purchases is above R50,000 for 10 grammes, 61% above the official rate of R31,000.

The government is looking at bank deposits of gold traders who have been splitting large sums into tranches of R2-2.5 lakhs. It is also monitoring property deals where the cash component has gone up. While most developers have said that sales have gone down, there has been a rise in the cash to cheque ratio in recent transactions. “It depends on the developer if he is able to regularise the cash so received by using black market where the going rate is R20,000 for every lakh of old currency to be converted,” according to one consultant.

The current regulation – Benami Transactions (Prohibition) Amendment Act – which came into force from November 1 applies if a property is in one name but paid for in another. By virtue of it, all recent transactions will be covered by tax authorities.

There is also a move by the Income tax department to look at unexplained money that many households have reported as part of regular income.

SHARE THIS ARTICLE ON
Close
Union minister of state for finance and corporate affairs Anurag Thakur on Saturday addressed the Punjab chapter of Entrepreneurs Organisation. (ANI File Photo )
Union minister of state for finance and corporate affairs Anurag Thakur on Saturday addressed the Punjab chapter of Entrepreneurs Organisation. (ANI File Photo )

On cryptocurrency, Anurag Thakur says ‘innovation welcomed, must evaluate ideas’

By hindustantimes.com | Written by Kanishka Sarkar, Hindustan Times, New Delhi
PUBLISHED ON MAR 06, 2021 09:09 PM IST
Anurag Thakur’s remark comes days after the Reserve bank of India (RBI) governor Shaktikanta Das flagged “major concerns” about the impact of cryptocurrencies on financial stability.
Close
The chairman of the 15th Finance Commission NK Singh(Sonu Mehta/ HT Archive)
The chairman of the 15th Finance Commission NK Singh(Sonu Mehta/ HT Archive)

Opted for continuity in deciding tax devolution to states: FC chairman N K Singh

PTI
UPDATED ON MAR 06, 2021 07:39 PM IST
  • The 15th Finance Commission has recommended that states be given 41 per cent of the divisible tax pool of the Centre during the period 2021-22 to 2025-26, which is at the same level as was recommended by the 14th Finance Commission.
Close
Other than tax-saving investments, taxpayers also need to complete other tax-related tasks in order to avoid penalties.(Reuters)
Other than tax-saving investments, taxpayers also need to complete other tax-related tasks in order to avoid penalties.(Reuters)

From ITR to PAN-Aadhaar linking: Tax-related tasks to complete before March 31

By hindustantimes.com | Edited by Mallika Soni
UPDATED ON MAR 06, 2021 04:45 PM IST
  • Here’s a list of some of the tasks which need to be performed by taxpayers before March 31
Close
Tail of AirAsia X plane as seen at the Garuda Maintenance Facility AeroAsia in Tangerang, Indonesia. (Reuters)
Tail of AirAsia X plane as seen at the Garuda Maintenance Facility AeroAsia in Tangerang, Indonesia. (Reuters)

AirAsia CEO says company may launch flying-taxi business in 2022

Bloomberg
PUBLISHED ON MAR 06, 2021 02:55 PM IST
With the airline business taking a hit from the coronavirus pandemic, AirAsia has been expanding in the digital space.
Close
Payrolls jumped by 379,000 last month, which was almost double expectations and pushed the unemployment rate down slightly to 6.2 percent, the Labor Department reported.(AFP file photo. Representative image)
Payrolls jumped by 379,000 last month, which was almost double expectations and pushed the unemployment rate down slightly to 6.2 percent, the Labor Department reported.(AFP file photo. Representative image)

Covid rescue plan clears hurdle as US economy shows gains

Posted by Harshit Sabarwal | AFP
PUBLISHED ON MAR 06, 2021 02:26 PM IST
Negotiations in the evenly divided Senate had frozen the chamber's action for some nine hours before the Democrats reached agreement with moderate Senator Joe Manchin, who had balked at the scale of the benefits.
Close
It was under his leadership that Muthoot Finance reached heights and also became the first NBFC to enter the ' <span class='webrupee'>₹</span>1000 crore net profit club'.(Muthoot Group)
It was under his leadership that Muthoot Finance reached heights and also became the first NBFC to enter the ' 1000 crore net profit club'.(Muthoot Group)

Muthoot Group chairman MG George passes away: All you need to know

By hindustantimes.com | Written by Deepali Sharma
PUBLISHED ON MAR 06, 2021 11:24 AM IST
Notably, George was one of the six people from the Malayalee background to have entered the Forbes Magazine's Rich list of 2020.
Close
The central bank in April had announced the government will issue Sovereign Gold Bonds (SGBs), part of the central government’s market-borrowing programme, in six tranches beginning April 20 till September.(Reuters)
The central bank in April had announced the government will issue Sovereign Gold Bonds (SGBs), part of the central government’s market-borrowing programme, in six tranches beginning April 20 till September.(Reuters)

A weak week for gold: Here's how the bullion fared

By hindustantimes.com | Written by Deepali Sharma, Hindustan Times, New Delhi
PUBLISHED ON MAR 06, 2021 11:17 AM IST
The continuous fall in the prices of gold allured Indian consumers to purchase more gold in physical form.
Close
In response to another question, Sitharaman said it was for the federal tax body, the GST Council, to take up this issue when it sees fit.
In response to another question, Sitharaman said it was for the federal tax body, the GST Council, to take up this issue when it sees fit.

Centre, states need to discuss fuel taxes, says Sitharaman

By Gireesh Chandra Prasad, Hindustan Times, New Delhi
PUBLISHED ON MAR 06, 2021 02:15 AM IST
  • In an interaction with members of the Indian Women’s Press Corps (IWPC), Sitharaman said that consumer sentiment about the tax burden on auto fuel was understandable.
Close
The Mukesh Ambani-led company expects to vaccinate around 900,000 people, including family members of employees, the company said.(Reuters representative image)
The Mukesh Ambani-led company expects to vaccinate around 900,000 people, including family members of employees, the company said.(Reuters representative image)

Reliance to bear the cost of covid shots for its staff

By Kalpana Pathak, Hindustan Times, Mumbai
PUBLISHED ON MAR 06, 2021 02:10 AM IST
  • Nearly 1.1 million vaccine doses were administered to people above the age of 60 and those in the 45-59 age group till Thursday.
Close
The Survey said a major challenge most firms face is the complex architecture of the governance framework, including the density of legislation and statutory compliances.(MINT_PRINT)
The Survey said a major challenge most firms face is the complex architecture of the governance framework, including the density of legislation and statutory compliances.(MINT_PRINT)

Govt plans to scrap 6,000 compliances

By Asit Ranjan Mishra, Hindustan Times, New Delhi
PUBLISHED ON MAR 06, 2021 02:04 AM IST
  • Mohapatra said the idea came during Modi’s meeting with Marriott International president and chief executive Arne Sorenson, who complained about the complex regulations in starting and running a hotel in India.
Close
Flush with liquidity and in tandem with Reserve Bank of India’s (RBI’s) repo rate cuts since March last year, banks have been lowering their lending rates.(Hemant Mishra/ Mint file photo)
Flush with liquidity and in tandem with Reserve Bank of India’s (RBI’s) repo rate cuts since March last year, banks have been lowering their lending rates.(Hemant Mishra/ Mint file photo)

ICICI cuts home loan rates to a decadal low

By Shayan Ghosh, Hindustan Times, Mumbai
PUBLISHED ON MAR 06, 2021 02:00 AM IST
  • ICICI Bank’s move comes days after rival lenders such as State Bank of India (SBI), Kotak Mahindra Bank and Housing Development Finance Corp. Ltd cut their home loan rates.
Close
Index funds and ETFs (exchange traded funds), which are passive in nature, will also be required to vote.(PTI File Photo)
Index funds and ETFs (exchange traded funds), which are passive in nature, will also be required to vote.(PTI File Photo)

Voting on corp resolutions compulsory for MFs: Sebi

By Neil Borate, Hindustan Times, Mumbai
PUBLISHED ON MAR 06, 2021 01:57 AM IST
  • These votes will have to be disclosed to unit holders under existing regulations. Voting will be at the MF level (rather than scheme level).
Close
Passenger vehicle manufacturers have been witnessing a sustained increase in retail sales on the back of improvement in economic activity and increased preference for personal mobility to avoid Covid infection.
Passenger vehicle manufacturers have been witnessing a sustained increase in retail sales on the back of improvement in economic activity and increased preference for personal mobility to avoid Covid infection.

Toyota SUV sales may skid on gaps in chipset supply

By Malyaban Ghosh, Hindustan Times, New Delhi
PUBLISHED ON MAR 06, 2021 01:55 AM IST
  • Supply of vehicles from Maruti Suzuki India Ltd—as part of the alliance with Suzuki Motor Corp—has helped Toyota increase its domestic market share in the premium hatchback and entry-level SUV segment, where it was not present before.
Close
ASI data is the most important source of industrial statistics of the registered organised manufacturing sector of the economy.(Reuters)
ASI data is the most important source of industrial statistics of the registered organised manufacturing sector of the economy.(Reuters)

Total factories in India grew by 2% in 2018-19

By Abhishek Jha, Hindustan Times, New Delhi
PUBLISHED ON MAR 06, 2021 01:51 AM IST
  • The top three states by GVA were Maharashtra, Gujarat, and Tamil Nadu. They had a share of 41% in the total GVA. Rural India added nearly as much GVA (49%) as urban India (51%).
Close
It is often believed that taxes on fuel affect the rich more than the poor, as the latter do not own vehicles.(Amal KS/ Hindustan Times)
It is often believed that taxes on fuel affect the rich more than the poor, as the latter do not own vehicles.(Amal KS/ Hindustan Times)

How do India’s fuel taxes impact the less affluent?

By Vineet Sachdev, Hindustan Times, New Delhi
UPDATED ON MAR 06, 2021 05:44 AM IST
  • Using average consumption shares to calculate the burden of an indirect tax has a problem.
Close
SHARE
Story Saved
OPEN APP