I-T begins Crackdown as Jewellers strike gold with Accounting Trick

GOVT. CRACKDOWN ON JEWELLERS!

Some jewellers used the LIFO method to value gold stock, which is not allowed under tax rules since 2016-17. This helped them show lower profits and pay less tax.

The tax department caught some of them and found underreported income. With rising gold prices, this trick made a big impact. FIFO or weighted average is the only allowed method.

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