Gold turns Black?

Hyderabad, MAY 15: We know that Prime Minister had announced demonetization last year to remove black money from the country

Although the black money in cash has been destroyed partially, a larger part of black money still remains in Gold.

A few examples of the scenario how black money is kept in gold are as follows

* Rise in import of Gold and Jewellery in last month

* People avoid paying taxes because of high rates.

* People buy gold by paying cash.

* Indian women are fond of Gold so they buy more gold.


After demonetization, gold imports decreased for 2-3 months but they increased in last 2 months with the return of cash in the system.

So experts are saying that a low tax rate on gold in GST could solve the problem to some extent.