New Delhi: As part of its ongoing fight against black money, the Centre may soon announce an amnesty scheme for gold, according to reports. The move, if implemented, will become as significant as demonetisation as there will be a fine on gold above a fixed quantity that will be specified in the scheme. Reports claimed that the finance ministry is finetuning the scheme. Any form of gold without a receipt will have to be disclosed to the government and the tax must be paid based on the rate set by the government, reported CNBC.

What is an Amnesty Scheme?

An amnesty is a limited-time window to declare something. Tax amnesty is an opportunity to pay outstanding tax and thereby be free from the consequences. Similarly, gold amnesty will be a window to declare the amount of gold. After that, heavy fines will be imposed on those holding unaccounted gold beyond the prescribed limit.

The tax rate on gold holdings beyond a certain monetary value could not be ascertained immediately, but an official said it would be in line with other ‘amnesty’ schemes that were floated during 2014-16. A government-approved valuer will certify the value of gold. Gold jewellery of married women below a certain amount will be exempted from this scheme, said a report of News18.

Gold is India’s most consumed asset — am emotional value attached to it. The country imports over 900 tonne of precious metal each year, spending more than Rs 250,000 crore ($35 billion) annually.

Not only individuals but India’s temple boards too possess an enormous quantity of gold.