New Delhi: After reports that many black money hoarders have bought gold with their undisclosed income, the Narendra Modi government will soon make a law to take out the black money that has been converted into gold.
The import of gold has doubled in the last year. The government suspects that this happened as a lot of people were trying to convert their black money after government started a war against corruption. After the note ban too lot of black money was converted into gold.
The scheme that government plans is to make this gold worthless for black money hoarders.
According to sources, the government is likely to set a limit for gold that can be kept at home.
Beyond the limit, people will have to deposit with government or banks, while explaining the sources of income from which the gold has been bought. It is likely that a penalty will be imposed on those who have bought gold with ill gotten wealth. It is also possible that government may seize this gold.
Tracking the gold stashed
After announcement of demonetisation on 8th November, many people started buying unaccounted gold from jewelery stores, it’s believed many black money holders converted their money into gold bars and jewellery.
The IT raided few jewellery stores across the country after few days and collected cctv footages from the jewellery stores and sales entries.
Most jewellery shops have been closed since 11 November after income tax department raided some stores following reports of alleged profiteering and efforts at tax evasion.
More updates are awaited as from when they government decided to take action against stashed gold.
(With PTI inputs)