FINANCE BILL, 2013 - CLARIFICATION ON AMENDMENT TO SECTION 206-C OF INCOME-TAX ACT DEALING WITH TAX COLLECTION AT SOURCE (TCS) ON SALE OF BULLION OR JEWELLERY IN CASH
PRESS RELEASE, DATED 1-5-2013
Currently, sale in cash of bullion (excluding coin or any other article weighing 10 grams or less) in excess of Rs. 2 lakh or jewellery in excess of Rs. 5 lakh is subject to Tax Collection at Source (TCS) @ 1%. As coins were neither included in bullion nor in jewellery, therefore, coins, even when amounting to more than Rs. 2 lakh in value, were being sold in cash without TCS.
The Finance Bill, 2013 proposes to delete exclusion of coins/articles weighing 10 grams or less from bullion. Hence, the sale of bullion (including coins/articles) in cash in excess of Rs. 2 lakh shall be subject to TCS @1%. Similarly, sale of jewellery in cash in excess of Rs. 5 lakh shall be subject to TCS @1%.
It is not a new levy of tax but continuation of old levy except withdrawal of exemption in the case of coins/articles weighing 10 grams or less.