Cash purchases of jewellery will attract one percent TCS

National |  Suryaa Desk  | Published :

Hyderabad : Cash purchases of jewellery will attract one percent TCS (tax collected at source) from April 1 if the amount exceeds Rs two lakh, as against the current threshold of Rs five lakh.Once the Finance Bill 2017 is passed, jewellery will be treated on par with general goods which attract one percent TCS (tax collected at source) on cash purchase of above Rs two lakh.


The Bill seeks to do away with the threshold of Rs five lakh on jewellery purchases for applicability of TCS (tax collected at source) because the Union Budget 2017-18 has proposed to ban cash dealings of over Rs 3 lakh and make violations punishable with a penalty of an equivalent amount to be paid by person receiving the cash.However, as there is no special provision for TCS (tax collected at source) on its purchase, jewellery is now being clubbed in general 'goods' on which 1 percent TCS is triggered if a single transaction exceeds Rs 2 lakh in cash.


In a bid to check generation of black money through large transactions, after the Budget proposal to scrap the previous threshold of Rs 5 lakh is approved by Parliament "The Income-tax Act provides for one percent TCS (tax collected at source) on cash purchase of goods or services above Rs two lakh. The definition of goods also includes jewellery and hence one percent TCS (tax collected at source) would be applicable on jewellery purchased above Rs two lakh in cash," an official said. 








SURYAA NEWS, synonym with professional journalism, started basically to serve the Telugu language readers. And apart from that we have our own e-portal domains viz,. https://www.suryaa.com/ and https://epaper.suryaa.com