Taxmann Gold and Taxation By Meenakshi Subramaniam Edition April 2025

Gold & Taxation is a comprehensive guide to the interplay between gold—one of the most coveted assets in India—and taxation under the Income-tax Act and GST regime. Written in an engaging, story-driven style, the book simplifies complex provisions by illustrating practical scenarios, case laws, humorous anecdotes, and FAQs. From amusing stories—to actual court cases on inherited gold, unexplained gold, and even a golden baggi (chariot), the author transforms a potentially dry topic into an engaging narrative. This work stands out for blending thorough legal insight with practical advice on remaining tax-compliant while enjoying the glitter of gold.

This book is intended for the following audience:

• Tax Professionals, CAs & Lawyers – Looking for a specialised reference on gold-related tax and compliance matters
• Jewellers & Gold Traders – Understanding how to navigate GST and Income-tax obligations for gold transactions
• Investors & Financial Advisors – Learning how to handle investments in gold, Gold ETFs, Sovereign Gold Bonds, and Gold Monetisation Schemes in a tax-efficient manner
• Students & Academics – Gaining insights into practical applications of tax laws and case studies specifically related to precious metals
• General Readers & Enthusiasts – Curious about how Indian tax laws impact one of the world’s oldest and most valuable commodities

The Present Publication is the 4^th Edition, authored by Meenakshi Subramaniam, with the following noteworthy features:

• [Comprehensive Coverage] Explores every aspect of gold taxation, from Income-tax implications to the Goods and Services Tax (GST) regime
• [Practical Insights & Examples] Practical dialogues, humorous narratives, and relevant case laws simplify complex legal provisions
• [Authoritative Commentary] Written by a former IRS officer with firsthand experience in tax administration and policy interpretation
• [Legal Precedents] Numerous landmark judgments and Departmental instructions (e.g., CBDT Instruction No. 1916) explained in plain language
• [User-friendly Approach] Inclusion of FAQs at the end of each chapter to address commonly asked questions
• [Accessible Language & Style] The book employs a conversational tone and humorous sketches, making tax law less intimidating
• [Inspirational for Academics and Enthusiasts] Incorporates references to historical anecdotes (from Chanakya to modern-day celebrities), offering a cultural perspective alongside legal content
• [First-of-its-kind Focus] Continues to be one of the most detailed works solely dedicated to gold taxation, reinforcing India’s longstanding connection with the precious metal

The coverage of the book is as follows:

• Gold Ownership & Income-Tax Limits
• How Much Gold Can You Hold explains permissible limits and documentary requirements
• Search, Seizure & Penalties
• Addresses the procedures under Section 132 and penalties for unaccounted gold
• Digital Search
• Discusses emerging provisions around digital evidence and e-assessments
• Government Gold Schemes
• Detailed chapters on the Gold Monetisation Scheme and Sovereign Gold Bonds, covering the benefits, tax advantages, and potential pitfalls
• Undisclosed & Unexplained Gold
• Examination of Section 69A and Section 69B issues, plus high-stakes penalty scenarios
• Capital Gains on Gold
• Covers indexation changes, exemption options, and practical cases on personal effects vs. capital assets
• Valuation
• Guidance on Section 55A and 142A valuations, plus tips to avoid pitfalls in gold valuation
• Gold Trading & Business Aspects
• Special focus on gold traders, books of account, and best practices under both Income-tax and GST
• Inheritance, Stridhan & Personal Assets
• Explores taxation on inherited gold, gold utensils, and stridhan with references to case laws and instructions
• GST on Gold
• Separate chapters for consumers and traders outlining tax rates, making charges, job-work implications, and the intricacies of Input Tax Credit (ITC)
• Appendices
• Historical Gold & Silver Rates
• Cost Inflation Index for gold from FY 2001-02 onwards
• GST Tariff relevant to gold and jewellery
• GST Forms specifically for gold traders

The structure of the book is as follows:

• Preface & Introduction – Sets the tone with humorous anecdotes and contextualises why gold is so crucial in India
• Sixteen Detailed Chapters – Each chapter tackles a specific theme—Search & Seizure, Gold Monetisation, Capital Gains, Stridhan, GST, etc.—beginning with simple overviews and culminating in FAQs to clear common doubts
• Appendices – Provides supplementary data, checklists, tariffs, and forms, making it a well-rounded resource
• The layout ensures a logical flow—starting with basic concepts of gold holding and culminating with the finer points of GST compliance and specialised forms. Every chapter includes practical illustrations, relevant legal provisions, interpretative guidance, and concluding FAQs