Cash purchases of jewellery will attract 1% TCS (Tax Collected at Source) from April 1, 2017 if the amount exceeds Rs 2 lakh, as against the current threshold of Rs 5 lakh.
Once the Finance Bill 2017 is passed, jewellery will be treated on par with general goods which attract 1% TCS on cash purchase of above Rs 2 lakh.
The Bill seeks to do away with the threshold of Rs 5 lakh on jewellery purchases for applicability of TCS 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.
What can be the possible questions of above news:
Q1. What should be the TCS (Tax Collected at Source) on purchase of jewellery by cash from April 1, 2017?
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Source- The Indian Express