1% tax on cash purchase of jewellery for more than ₹2 lakh
Cash purchases of jewellery will attract 1% tax collected at source (TCS) from April 1 if the amount exceeds ₹2 lakh, as against the current threshold of ₹5 lakh. Once the Finance Bill 2017 is passed, jewellery will be treated on par with general goods. This comes amid the government's decision banning cash transactions above ₹3 lakh from April 1.