Millennium Post

Gold buying from abroad comes under I-T dept lens

Financial details of Indians bringing in gold from abroad after duty payment will be shared by customs authorities with Income Tax department to check suspicious ferrying of the yellow metal into the country. According to norms, an Indian who has been living abroad for over six months can bring in a kg of gold legally after payment of duty. The duty, which is charged at the rate of 10 per cent, is payable in currency of the nation where the gold was bought. Besides, a man can also bring in gold jewellery worth Rs 50,000 and women Rs one lakh, without payment of any duty, provided they live abroad for more than a year.

Officials in the Directorate of Revenue Intelligence (DRI), agency responsible for checking smuggling and customs duty evasion among others, said at least 3,000 kg of gold has been legally brought into the country after payment of customs duty during 2013-14.
‘There has been a rise in people bringing in one kg of gold legally. There is a possibility of an organised gang of hawala operatives who could be exploiting these people after paying money. The PAN card details of these flyers are being shared with Income Tax department to ascertain source of their income and avoid possibility of any wrongdoing,’ a senior DRI official said.
There is a suspicion that the gold is being sold to bullion traders, they said.

The official cites that there is huge profit in legally bringing gold to India. An individual can make at least Rs two lakh if he sells a kilogram of gold (which costs about Rs 1.61 lakh) bought from foreign nations here.   The high demand of gold has been a matter of concern for Finance Ministry which is grappling to rein in current account deficit (CAD), difference between the outflow and inflow
of foreign currency.
Next Story
Share it