Hyderabad: Jewellers dealing with the lack of any major announcement for the sector in the Union Budget hoped to benefit from the lowered income tax rates and other measures.Rakesh Tiruveedhula, director of RS Brothers Jewellers Pvt. Ltd, said the revision in tax deduction at source (TDS) and tax collection at source (TCS) policies for transactions above Rs.50 lakh would make business operations smoother.“Additionally, the increase in the personal income tax exemption to Rs.12 lakh will give customers more disposable incomes, which could slightly boost spending.”With regard to purchases, Tiruveedhula said: “When it comes to gold prices, stability is key. Whether the price settles at Rs.8,000 or Rs.7,500 per gram of gold, customers will feel confident buying when there is consistency. As long as prices keep fluctuating, consumer sentiment will remain cautious.”Avinash Gupta, vice-chairman, All India Gem And Jewellery Domestic Council thanked the finance minister for keeping the customs duties on gold, silver and platinum unchanged.A key move has been the reduction of import duties on jewellery from 25 per cent to 20 per cent and on platinum from 25 per cent to 5 per cent. “While these changes will positively impact the market, the biggest boost for the gem and jewellery industry will come from the reduction in personal income tax,” Gupta said.“With more disposable income in consumers hands, we expect a surge in demand, especially in the retail segment of the jewellery market,” he said.
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