Looking for expert help with income tax for jewellers and goldsmiths India? The team at Tax Garden, based in Kondapur, Hyderabad, helps Indian SMEs stay compliant. End-to-end filings, notices, and deadline tracking, all in one place.
Who is this guide for? If you are a jewellery shop owner, goldsmith (karigar), bullion dealer, gold trader, silver jeweller, or anyone earning business income from manufacturing, trading, or repairing gold and silver jewellery in India, this guide covers your complete income tax obligations for AY 2026-27 (FY 2025-26): income classification, Section 44AD presumptive taxation, GST at 3% on gold, TDS on karigar payments, cash transaction limits under Section 269ST, mandatory stock valuation rules, BIS hallmarking compliance, and ITR filing.
How is income tax calculated for jewellers in India? Jewellers pay income tax on business income. Under Section 44AD (Section 58, ITA 2025), a jeweller with turnover up to Rs 3 crore (if cash receipts are 5% or less) declares 6% of digital receipts and 8% of cash receipts as deemed profit. On Rs 50 lakh annual turnover (70% digital), taxable income works out to roughly Rs 3.30 lakh under Section 44AD. The new tax regime taxes this at the lowest slab, and the Section 87A rebate may eliminate the liability entirely if total income stays below Rs 12 lakh.
India's jewellery industry employs over 5 million people, from karigar workshops in Rajkot and Zaveri Bazaar to retail showrooms across every district. Whether you operate a family-owned jewellery shop, work as a goldsmith making ornaments for retailers, or trade bullion, your tax obligations are more complex than most retail businesses. You handle high-value inventory where daily gold price movements change your closing stock valuation. You receive and make cash payments that are subject to strict limits under Section 269ST. You pay karigars who require TDS compliance under Section 194C. And your GST sits at a special 3% rate outside the standard slab structure.
This guide covers every tax obligation for jewellers and goldsmiths. For GST specifics on gold invoicing, see the GST on gold and jewellery guide. For capital gains when selling personal gold holdings, see the tax on sale of gold guide.
How Jewellers and Goldsmiths Earn Income
Jewellery businesses operate across multiple revenue streams, and each has different tax treatment:
Tax Rate Chart
Revenue Streams for Jewellers and Goldsmiths
Typical ranges; actual mix varies by shop size and specialisation
Gold Jewellery Sales (Retail)
Finished jewellery sold to walk-in customers; gold value + making charges
Making Charges (Karigar Work)
Job work for other jewellers or on customer-supplied gold; pure service income
Bullion and Gold Bar Trading
Wholesale or retail gold/silver bar sales; thin margin, high volume
Old Gold Exchange
Customers exchange old jewellery for new; differential value booked as revenue
Repair and Polishing Work
Resizing, soldering, rhodium plating, stone resetting
Silver Jewellery and Artefacts
Silver items, idols, utensils; lower margin but growing segment
Source: Industry estimates based on GJC surveys and Tax Garden client filings (FY 2025-26)
A mid-sized jewellery shop in a tier-2 city with 2-3 karigars earns Rs 50 lakh to Rs 3 crore in annual turnover. Margins on finished jewellery range from 8% to 25% depending on making charges and wastage recovery. Karigars working on job work basis earn Rs 3 lakh to Rs 15 lakh per year, primarily through making charges paid by retail jewellers.
Income Classification: Business Income
All income from jewellery manufacturing, trading, and goldsmith work is classified as Profits and Gains of Business or Profession under the business head (Section 28 of the Income Tax Act, 1961). Jewellery is not a "specified profession" under Section 44AA.
Jewellers use Section 44AD (Section 58, ITA 2025), not Section 44ADA.
Business vs capital gains: the critical distinction
When a jeweller sells gold from business stock, the profit is business income taxed at slab rates. When an individual sells personal gold jewellery held as an investment, the profit is capital gains. The distinction depends on the intention at the time of purchase: stock-in-trade (business) vs personal asset (capital gains). For jewellers, all gold held for sale in the shop is stock-in-trade. Personal gold worn by the family is a capital asset.
Mixing the two is a common audit trigger. Keep separate records for business stock and personal holdings.
Business codes for jewellers
Tax Rate Chart
Business Codes for ITR Filing
Select the code matching your primary activity in ITR-4 or ITR-3
02002 - Retail Trade (Jewellery Shop)
Primary code for jewellery retail shops
01099 - Other Manufacturing
Use if you manufacture in-house with own karigars
02001 - Wholesale Trade
Bullion dealers and wholesale jewellery distributors
Source: CBDT Business Code List for ITR Filing (AY 2026-27); see full list at Tax Garden business code guide
Most jewellery shops both manufacture and retail. If your primary revenue is from retail sales to end customers, use 02002. If your primary activity is manufacturing for other retailers, use 01099. See the business code list for the complete reference.
For GST registration and Udyam (MSME) registration, use NIC codes instead: 32111 for manufacture of jewellery of gold and silver, 47733 for retail sale of jewellery, or 46497 for wholesale of precious metals. These are different from ITR business codes.
Section 44AD Presumptive Taxation: How It Works for Jewellers
Most small and mid-sized jewellers qualify for presumptive taxation under Section 44AD (Section 58, ITA 2025).
Tax Rate Chart
Deemed Profit Rates Under Section 44AD
Applied to your gross receipts (total turnover)
Digital Receipts (UPI, bank transfer, cheque)
Lower rate incentivises digital collection
Cash Receipts
Higher rate for cash transactions
Source: Section 58(2), Table Sl. No. 1, Income Tax Act 2025
Turnover limits
Tax Rate Chart
Section 44AD Turnover Thresholds
Cash receipt percentage determines your eligible limit
Cash receipts 5% or less of total
Extended limit for businesses with mostly digital payments
Cash receipts above 5% of total
Standard limit; many jewellers fall here due to cash transactions
Source: Section 58(2), Income Tax Act 2025
The cash percentage challenge for jewellers
Jewellery businesses historically involve significant cash transactions. Even with Section 269ST capping cash receipts at Rs 2 lakh per transaction, many small jewellers still process 10-30% of their turnover in cash (small repairs, silver items, daily-wear purchases). If your cash receipts exceed 5% of total turnover, the Section 44AD limit drops from Rs 3 crore to Rs 2 crore. Monitor your cash percentage monthly.
Worked example
A jewellery shop in Jaipur earned Rs 1.2 crore in FY 2025-26. Rs 1 crore came through UPI and bank transfers, Rs 20 lakh in cash. Cash percentage is 16.7% (above 5%), so the turnover limit is Rs 2 crore. The shop is within limits.
Tax Rate Chart
Tax Calculation: Jeweller Earning Rs 1.2 Crore
New tax regime, AY 2026-27
Digital receipts (Rs 1 crore x 6%)
Deemed profit on UPI/bank payments
Cash receipts (Rs 20 lakh x 8%)
Deemed profit on cash payments
Total deemed profit
Taxable business income
Tax payable (new regime)
Below Rs 12 lakh; full rebate under Section 87A
Source: Section 58 and Section 115BAC, Income Tax Act 2025
At Rs 7.60 lakh deemed profit, the jeweller is below the Rs 12 lakh Section 87A rebate threshold under the new tax regime. Tax payable: zero. ITR-4 must still be filed by 31 July 2026.
When Section 44AD does not make sense for jewellers
Jewellery is a low-margin, high-turnover business. Your actual net profit margin on gold sales may be 3-8%, well below the 6-8% deemed profit under Section 44AD. If your actual profit is consistently lower than deemed profit, you may save tax by maintaining full books and filing ITR-3. But full books require proper stock registers, purchase invoices, and potentially a tax audit if turnover exceeds Rs 1 crore (cash >5%) or Rs 10 crore (cash within 5%).
Run the numbers both ways before choosing. Once you opt into Section 44AD, the 5-year lock-in applies.
GST on Gold Jewellery: The Special 3% Rate
Gold sits outside the standard GST slab structure. The 56th GST Council retained gold at its special rate under GST 2.0 (effective 22 September 2025).
Tax Rate Chart
GST Rates for Jewellers
As of FY 2025-26 (post GST 2.0)
Gold Jewellery (finished)
HSN 7113; includes gold value and making charges when sold as finished product
Gold Bars and Coins
HSN 7108; raw gold and investment bars
Silver Jewellery and Artefacts
HSN 7114; silver articles, idols, utensils
Making Charges (standalone service)
SAC 9988; when karigar invoices making charges separately as job work
Diamond and Precious Stones
HSN 7102/7103; uncut diamonds and precious stones
Source: GST Council; Notification 1/2017-CT(R) as amended; see Tax Garden GST on Gold guide
For detailed GST calculation examples, invoicing rules, and old gold exchange treatment, see the GST on gold and jewellery guide.
GST registration threshold
GST registration is mandatory once aggregate annual turnover crosses Rs 20 lakh (Rs 10 lakh in special category states). Nearly every jewellery shop crosses this threshold. The GST Composition Scheme at 1% may be available for jewellers with turnover below Rs 1.5 crore, but composition dealers cannot claim input tax credit, which is valuable when purchasing gold from registered suppliers. Most jewellers opt for the regular scheme.
TDS on Karigar Payments: Section 194C
When a jeweller pays a karigar (goldsmith artisan) for making jewellery, the payment falls under Section 194C (Section 393, ITA 2025) as a contractor payment for "carrying out any work."
Tax Rate Chart
TDS on Karigar Making Charges
Deducted by the jeweller before paying the karigar
Individual karigar or HUF
Most independent goldsmiths fall here
Partnership firm or company
Goldsmith workshop firms or karigar cooperatives
PAN not furnished by karigar
Under Section 206AA; always collect karigar PAN before first payment
Source: Section 393, Income Tax Act 2025 (previously Section 194C, IT Act 1961)
When TDS kicks in
TDS under Section 194C applies when a single payment exceeds Rs 30,000 or aggregate payments to a karigar during the financial year exceed Rs 1 lakh. Below these thresholds, no TDS is required.
Gold wastage is NOT subject to TDS
This is a point the Income Tax Department has contested, but ITAT Chennai has ruled clearly: gold wastage during ornament manufacturing is a material loss, not a payment for work. It cannot be treated as "making charges" subject to TDS under Section 194C. Wastage is an inherent part of the goldsmithing process (typically 2-7% of gold weight), and since no amount is credited to the karigar's account for wastage, TDS does not apply on the wastage component.
However, keep clear documentation separating making charges (subject to TDS) from wastage allowance (not subject to TDS) in your karigar invoices.
30% disallowance risk
If a jeweller fails to deduct TDS on karigar payments when required, 30% of the payment is disallowed as a business expense under Section 40(a)(ia) (Section 39, ITA 2025). On Rs 10 lakh of karigar payments without TDS, Rs 3 lakh gets disallowed, increasing your taxable income. This penalty makes TDS compliance non-negotiable for jewellers with karigar expenses.
Cash Transaction Limits: Section 269ST
Jewellery is one of the sectors most heavily monitored for cash transactions. Section 269ST (now Section 186, ITA 2025) sets a hard limit:
Tax Rate Chart
Cash Receipt Limits for Jewellers
Violations attract 100% penalty on the cash amount received
Per person, per day
Cash from one customer in one day must stay below Rs 2 lakh
Per single transaction
Even if spread across multiple days, one transaction must be below Rs 2 lakh in cash
Per event or occasion
Wedding jewellery purchased over multiple visits for the same event counts as one occasion
Source: Section 186, Income Tax Act 2025 (previously Section 269ST, IT Act 1961)
Penalty
The penalty for violating Section 269ST is equal to the entire cash amount received. If you accept Rs 3 lakh in cash from one customer for a gold chain, the penalty is Rs 3 lakh. This applies even if you report the sale correctly in your ITR.
PAN requirement on gold purchases
Under Rule 114B, any person purchasing jewellery or bullion worth Rs 2 lakh or more (whether in cash or otherwise) must furnish PAN or Form 60 (if PAN is not available). You must collect the buyer's PAN and record it in your invoice.
Practical impact for jewellers
A customer buying a Rs 5 lakh gold necklace can pay a maximum of Rs 1,99,999 in cash. The remaining amount must come via UPI, bank transfer, cheque, or demand draft. Train your sales staff on this rule. Post the limit visibly at your billing counter. Accepting cash above the limit, even unknowingly, triggers automatic penalty.
Gold Stock Valuation: FIFO or Weighted Average Only
Stock valuation is the most scrutinised area for jewellers during income tax assessments. Gold prices fluctuate daily, and the method you use to value closing stock directly impacts your taxable profit.
Comparison
Stock Valuation Methods: Permitted vs Prohibited
ICDS-II mandatory from FY 2016-17
| Parameter | FIFO (First-In-First-Out) | Weighted Average Cost |
|---|---|---|
| Method | Oldest stock sold first; closing stock valued at most recent purchase price | Average cost of all purchases; closing stock valued at weighted average rate |
| Effect on Profit (Rising Gold Prices) | Higher closing stock value = higher profit | Moderate closing stock value = moderate profit |
| Effect on Profit (Falling Gold Prices) | Lower closing stock value = lower profit | Moderate closing stock value = moderate profit |
| Compliance | Permitted under ICDS-II | Permitted under ICDS-II |
| Documentation | Requires purchase-date-wise stock register | Requires running average computation |
| Best For | Jewellers with clearly identifiable lots (hallmarked with HUID) | Jewellers with mixed inventory where individual lot tracking is impractical |
Takeaway: Choose one method and apply it consistently. Switching methods to minimise tax is a red flag during assessment.
Source: ICDS-II (Valuation of Inventories); AS-2 (ICAI); Income Tax Rules
LIFO is banned
The LIFO (Last-In-First-Out) method is explicitly prohibited under ICDS-II since FY 2016-17. LIFO values closing stock at older (lower) purchase prices, artificially reducing taxable profit when gold prices rise. The Income Tax Department has been actively investigating jewellers who continue to use LIFO, resulting in reassessments, penalties, and interest charges.
Valuation at cost or net realisable value
Closing stock must be valued at cost or net realisable value, whichever is lower. If gold prices drop significantly near year-end, you can value stock at the lower market rate. If prices rise, you value at your actual purchase cost. This is the standard AS-2 principle.
Practical tip: maintain a stock register
Gold stock registers should record: date of purchase, supplier name and GSTIN, weight, purity (carat/fineness), rate per gram at purchase, HUID (for hallmarked items), and date of sale. This register is your primary defense during assessment.
BIS Hallmarking Compliance
BIS hallmarking is mandatory for gold jewellery sold in India. While this is not directly a tax obligation, non-compliance affects your business legality and can trigger scrutiny.
Step-by-Step Guide
BIS Hallmarking Requirements for Jewellers
Mandatory in 380+ notified districts (2026)
BIS Registration
Register with Bureau of Indian Standards as a jeweller. Registration valid for 1 year. Apply at bis.gov.in
AnnualGet Jewellery Hallmarked
Send jewellery to BIS-recognised Assaying and Hallmarking Centre (AHC). Gold must be 9K to 24K purity
Per PieceHUID Stamping
Each piece gets a unique 6-digit HUID (Hallmark Unique Identification Number) for traceability
Per PieceSilver Hallmarking
Mandatory from September 2025. Silver jewellery and artefacts must carry BIS hallmark
NewDisplay BIS Certificate
Display your BIS registration certificate at the shop. Customers can verify HUID at bis.gov.in
ComplianceAnnual Renewal
Renew BIS registration before expiry. Renewal fee is a deductible business expense
AnnualSource: BIS Act, 2016; Hallmarking of Gold Jewellery and Gold Artefacts Order, 2020
Penalties for non-compliance
Selling non-hallmarked gold jewellery in a notified district attracts enforcement action under Section 29 of the BIS Act, 2016. Penalties include seizure of non-compliant jewellery, fines from Rs 1 lakh to 5 times the value of the jewellery, and imprisonment. BIS registration fees and hallmarking charges are deductible business expenses.
Deductible Expenses and Depreciation
If you maintain regular books instead of using Section 44AD, you can claim actual business expenses and depreciation on assets.
Tax Rate Chart
Depreciation Rates for Jeweller Assets
Written Down Value (WDV) method, as per Income Tax Act
Shop Furniture and Display Cases
Glass counters, display cabinets, safes, vault fittings
Weighing Equipment and Tools (Plant and Machinery)
Electronic scales, gold testing kits, soldering equipment, polishing machines
CCTV and Security Systems
Cameras, alarm systems, access control
Computer, Billing Software, POS Terminal
Jewellery ERP, billing system, accounting software
Vehicle (Commercial Use)
Delivery vehicle, gold transport to hallmarking centre
Source: Appendix I to Income Tax Rules, 1962; Section 32, Income Tax Act
Common deductible expenses
- Shop rent: monthly rent for retail space and karigar workshop
- Electricity and utilities: high due to air conditioning, lighting for display, and workshop power tools
- Staff salaries: sales staff, billing clerk, security guard, accountant
- Insurance: gold stock insurance (all-risk policy), shop insurance, employee insurance
- BIS and hallmarking charges: registration fees, per-piece hallmarking fees
- Gold testing and assaying: XRF machine rental or assaying centre charges
- Security services: cash-in-transit, armed guard, vault maintenance
- Packaging: jewellery boxes, gift wrapping, carry bags
- Advertising: newspaper ads, local marketing, Google Ads, social media
- Professional fees: CA fees, legal fees, ERP annual maintenance
Under Section 44AD, none of these deductions apply separately. The 6% or 8% deemed profit rate is final.
Which ITR Form to File
Comparison
ITR-4 vs ITR-3 for Jewellers
Choose based on your accounting method and turnover
| Parameter | ITR-4 (Sugam) | ITR-3 |
|---|---|---|
| When to use | Section 44AD presumptive taxation | Maintaining full books of accounts |
| Income limit | Total income up to Rs 50 lakh | No income limit |
| Turnover limit | Rs 2-3 crore (depends on cash %) | No turnover limit |
| Stock valuation | Not required (deemed profit is final) | Mandatory; FIFO or Weighted Average |
| Expense claims | Not allowed | All actual expenses and depreciation deductible |
| Tax audit | Not required (unless opting out early) | Required if turnover exceeds Rs 1 crore / Rs 10 crore |
| Best for | Small jewellers below Rs 2 crore turnover | Large jewellers, or where actual margin is below 6-8% |
Takeaway: Most small jewellers benefit from ITR-4 (no stock valuation headache). Switch to ITR-3 when your actual margins are consistently below 6%, as the stock valuation burden may be worth the tax savings.
Source: Income Tax Act 2025; see the full ITR comparison guide
For ITR-4 filing, enter business code 02002 (Retail trade) or 01099 (Manufacturing) in the Nature of Business field. For a detailed comparison of all ITR forms, see the ITR-2 vs ITR-3 vs ITR-4 guide.
Filing deadline
ITR-4 for AY 2026-27 is due by 31 July 2026. If subject to tax audit (ITR-3), the deadline extends to 31 October 2026. Missing the deadline triggers a late filing fee of Rs 5,000 (Rs 1,000 if total income is below Rs 5 lakh) and interest under Section 234A on any tax due.
Advance Tax
If your total tax liability after TDS exceeds Rs 10,000 in a financial year, you must pay advance tax. Under Section 44AD, you get a simplified rule: pay the entire advance tax in a single instalment by 15 March.
Deadline Timeline
Advance Tax Due Dates for Jewellers
FY 2025-26 (AY 2026-27)
Q1 Instalment (15%)
Only if NOT using Section 44AD
Q2 Instalment (45%)
Only if NOT using Section 44AD
Q3 Instalment (75%)
Only if NOT using Section 44AD
Q4 / Single Instalment (100%)
Section 44AD users: pay full amount by this date
Source: Section 211, Income Tax Act 1961; Section 58, ITA 2025
Miss the 15 March deadline and you owe interest under Section 234B and 234C at 1% per month on the shortfall.
Common Mistakes Jewellers Make
Tax Rate Chart
8 Tax Mistakes to Avoid
Each can trigger scrutiny, penalties, or overpayment
1. Accepting cash above Rs 2 lakh per transaction
Section 269ST violation; penalty equals the entire cash amount
2. Using LIFO for stock valuation
LIFO banned since FY 2016-17; IT Dept actively investigating jewellers
3. Not deducting TDS on karigar payments
Section 40(a)(ia) disallows the expense; always deduct TDS above thresholds
4. Not collecting buyer PAN above Rs 2 lakh
Mandatory for all jewellery purchases Rs 2 lakh or more
5. Mixing business stock and personal gold
Keep separate records; business gold is stock-in-trade, personal gold is capital asset
6. Ignoring BIS hallmarking in notified districts
BIS Act 2016 Section 29; can lead to shop seizure
7. Not furnishing karigar PAN
Collect PAN from every karigar before first payment
8. Cash percentage above 5% without tracking
Rs 2 crore instead of Rs 3 crore; track cash vs digital monthly
Source: Common issues from Tax Garden client filings and IT assessment cases (FY 2024-25 and 2025-26)
Pre-Filing Checklist for AY 2026-27
Step-by-Step Guide
ITR Filing Checklist for Jewellers
Complete before 31 July 2026
Download Form 26AS and AIS
Verify all TDS entries (karigar payments, rent, professional fees) and high-value transaction reporting in AIS
VerifyCalculate total turnover
Sum all sales: gold, silver, making charges, repairs. Separate digital vs cash receipts
ComputeVerify cash percentage
If cash receipts exceed 5%, Section 44AD limit is Rs 2 crore (not Rs 3 crore)
CheckValue closing stock
Use FIFO or Weighted Average (not LIFO). Record gold weight, purity, and purchase rate for each lot
ComputeReconcile karigar TDS
Ensure all TDS deducted on karigar payments is deposited and reflected in TDS returns (Form 26Q)
VerifyApply deemed profit rates (if Section 44AD)
6% on digital receipts + 8% on cash receipts = total deemed profit
ComputeChoose tax regime
Compare old vs new regime. Most jewellers benefit from the new regime
DecideFile ITR-4 with business code 02002
File on incometax.gov.in. E-verify within 30 days of filing
FileSource: Income Tax Department filing guidelines for AY 2026-27
ITA 2025 Section Reference
The Income Tax Act 2025 (effective 1 April 2026) renumbered many sections. Here is the mapping for sections relevant to jewellers. For the full mapping, see the ITA 2025 section mapping guide.
Tax Rate Chart
Old vs New Section Numbers (ITA 2025)
Use new section numbers for all filings from AY 2026-27
Section 44AD (Presumptive taxation)
Consolidated with 44ADA and 44AE
Section 44AB (Tax audit)
Thresholds unchanged
Section 194C (TDS on contractors)
Karigar payments fall here
Section 269ST (Cash receipt limit)
Rs 2 lakh limit unchanged
Section 40(a)(ia) (TDS disallowance)
30% disallowance for non-deduction of TDS
Section 206C (TCS)
TCS provisions consolidated
Source: Income Tax Act 2025; incometax.gov.in
How Tax Garden Helps Jewellers and Goldsmiths
You craft jewellery and serve customers. Tax compliance shouldn't consume your evenings. Tax Garden handles the entire process: we download your Form 26AS and AIS, reconcile all karigar TDS, verify your stock valuation method, compute tax under both regimes, and file your ITR-4 before deadline. If you file ITR-3, we prepare the full P&L and Balance Sheet including gold stock schedules. GST filing for gold (GSTR-1 and GSTR-3B) included. Flat fee, no hourly billing, no surprises.
Work with the Trusted Tax & Compliance Services in Kondapur, Hyderabad - Tax Garden for expert GST filing, ITR, TDS, ROC, and startup compliance support.
Frequently Asked Questions: Tax Services in Kondapur & Hyderabad
What makes Tax Garden a preferred GST consultant in Kondapur?
Tax Garden is ISO 9001:2015 certified and backs every engagement with Kavach, our ₹50,000 error-protection cover. Our flat-fee, no-surprise pricing and dedicated account manager make us a compliance partner for startups and SMEs in Kondapur's HITEC City corridor.
Why is Tax Garden a trusted tax compliance partner in Hyderabad?
Trust comes from three pillars at Tax Garden. First, transparency: you know the exact fee before you sign up, and it never changes mid-year. Second, certified expertise: our compliance team is qualified, and the firm holds ISO 9001:2015 certification. Third, accountability: Kavach, our unique error-protection plan, covers up to ₹50,000 in service charges for any clerical mistake made by our team.
Is there a reliable tax consultant near me in Kondapur?
Yes. Tax Garden's office is in Kondapur itself (CWS One Building, Hanuman Nagar). You can book an in-person consultation or get everything done fully online via WhatsApp and our client portal. We serve walk-in clients by appointment and remote clients across all of Hyderabad and Telangana.
I want a friendly CA who explains things clearly. Is that Tax Garden?
Absolutely. Every client gets a dedicated account manager reachable on WhatsApp, plain-language explanations of what is filed and why, and proactive reminders before every deadline. No jargon, no surprises, just friendly, expert compliance support from Kondapur.
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Tax Garden is located at 4th Floor, South Block, CWS One Building, Hanuman Nagar, Kondapur, Hyderabad, Telangana 500084. We serve clients across Kondapur, HITEC City, Gachibowli, Madhapur, Jubilee Hills, Banjara Hills, and all of Hyderabad.
Can I get GST filing and registration services in Kondapur?
Yes. Tax Garden offers end-to-end GST services from our Kondapur office: GST registration, GSTR-1, GSTR-3B, GSTR-9 annual returns, ITC reconciliation, e-invoicing setup, and GST notice handling for businesses of all sizes in Kondapur and Hyderabad.
Do you file ITR for salaried employees and businesses in Hyderabad?
Yes. Our Kondapur team files ITR for salaried employees, freelancers, consultants, business owners, LLPs, and companies across Hyderabad. We cover ITR-1 through ITR-6 with complete Chapter VI-A deduction reconciliation, AIS reconciliation, and proactive deadline management.
Which areas in Hyderabad does Tax Garden serve?
Tax Garden's Kondapur office serves clients across Hyderabad including HITEC City, Gachibowli, Madhapur, Jubilee Hills, Banjara Hills, Begumpet, Secunderabad, Ameerpet, Kukatpally, Uppal, LB Nagar, and all of Telangana. Most services are available fully online.
What compliance services does Tax Garden offer for startups in Kondapur?
Tax Garden is a compliance partner for startups in Kondapur and Hyderabad's HITEC City corridor. We handle company incorporation, GST registration, TDS filings, payroll, ROC annual filings, director KYC, and annual ITR filing, all under one flat-fee plan.
How does Tax Garden's compliance model compare to traditional hourly accounting services in Hyderabad?
Unlike traditional accounting practices that charge hourly and are difficult to reach, Tax Garden operates on flat-fee subscription plans with a dedicated account manager, monthly compliance updates, and WhatsApp-first communication. Our AI-powered workflow catches errors before filings are submitted, and Kavach error-protection ensures you are never left alone if something goes wrong.
Frequently Asked Questions
Which ITR form should a jeweller file for AY 2026-27?
Jewellers using Section 44AD presumptive taxation file ITR-4 (Sugam) if total income is below Rs 50 lakh. Use business code 02002 (Retail trade) for jewellery retail shops, or 01099 (Other manufacturing) if you manufacture jewellery in-house. If you maintain full books of accounts, claim actual expenses and depreciation, or your turnover exceeds Section 44AD limits, file ITR-3. Most small and mid-sized jewellers with turnover below Rs 2-3 crore benefit from ITR-4.
What is the GST rate on gold jewellery in India?
Gold jewellery attracts 3% GST on the gold value (HSN 7113). Making charges attract 5% GST separately (SAC 9988) when invoiced as a standalone service by a karigar. When a jeweller sells finished jewellery, the 3% GST applies on the total invoice value including making charges. The GST Council retained gold at 3% under GST 2.0 (effective 22 September 2025), outside the standard slab structure.
Do jewellers need to deduct TDS on karigar payments?
Yes. Payments to karigars (goldsmiths) for making jewellery fall under Section 194C (Section 393, ITA 2025) as contractor payments. TDS is 1% for individual karigars and 2% for firms. TDS applies when a single payment exceeds Rs 30,000 or aggregate payments during the year exceed Rs 1 lakh. Gold wastage during ornament manufacturing is not treated as making charges for TDS purposes (ITAT Chennai ruling).
Can a jeweller accept more than Rs 2 lakh in cash from a customer?
No. Section 269ST (Section 186, ITA 2025) prohibits receiving Rs 2 lakh or more in cash from a single person in a day, for a single transaction, or for transactions relating to one event or occasion. The penalty equals the entire cash amount received. Jewellers must insist on UPI, bank transfer, or cheque for sales above Rs 2 lakh.
Is LIFO method allowed for gold stock valuation?
No. ICDS-II (Income Computation and Disclosure Standards) mandates FIFO (First-In-First-Out) or Weighted Average Cost method for inventory valuation from FY 2016-17. LIFO (Last-In-First-Out) is explicitly prohibited. The Income Tax Department actively investigates jewellers using LIFO to undervalue closing stock, as gold prices generally rise over time and LIFO artificially reduces taxable profit.
Is BIS hallmarking mandatory for all jewellers?
BIS hallmarking is mandatory for gold jewellery (9K to 24K) in 380+ notified districts across India as of 2026. Silver hallmarking became mandatory from September 2025. Every hallmarked piece carries a HUID (Hallmark Unique Identification Number). BIS registration is required before selling hallmarked jewellery, valid for 1 year with annual renewal. Non-compliance attracts penalties under Section 29 of the BIS Act, 2016, ranging from Rs 1 lakh fine to imprisonment.
What expenses can a jeweller deduct from business income?
If not using Section 44AD presumptive taxation, deductible expenses include shop rent, electricity and utilities, staff salaries, safe and vault maintenance, CCTV and security, insurance premiums on gold stock, BIS registration and hallmarking fees, gold testing and assaying charges, depreciation on shop fittings (10% WDV), weighing equipment (15% WDV), computers and billing software (40% WDV), advertising, and packaging materials. Under Section 44AD, no separate expense deduction is available.
