The Narendra Modi government is mulling over an amnesty scheme for gold, sources have told Zee News. It is learnt that the scheme will soon be approved by the Union Cabinet.
This scheme would be the second major step taken by Prime Minister Modi in curbing black money after demonetisation in November 2016.
According to the sources, gold without a proper receipt will have to be disclosed to the government and tax would be paid on the rate decided by the government. Just like the amnesty scheme for income tax, the gold amnesty scheme will also be open for a certain period and those failing to disclose gold without proper bills will invite heavy penalties.
The sources added that the government may also announce to use the huge amounts of gold lying with temples and trusts across the country as Productive Investment.
As per reports, the Department of Economic Affairs and the Department of Revenue have jointly prepared the proposal for this scheme.
Sources also said that the Finance Ministry had already sent its proposal to Cabinet and the discussions were supposed to be held in the second week of October but it was delayed due to Assembly elections in Maharashtra and Haryana.
The government is also planning to revise the present Sovereign Gold Bond Scheme to make it more attractive to buyers. The Sovereign Bond Scheme allows individuals and Hindu Undivided Families (HUFs) to purchase up to four kg of gold in Demat form, while the trusts can purchase 20 kgs.
Recently, the Indian tax authorities received information regarding Indian citizens’ financial accounts in Swiss banks as a part of the Automatic Exchange of Information (AEOI) framework between India and Switzerland. Aimed at curbing black money in the country, the exchanged information allows the cantonal tax authorities to verify whether taxpayers have correctly declared their financial accounts abroad in their tax returns.