The Gold Control Act has already expired in the country. Therefore, there is no restriction on the quantity of gold to be kept. The Central Board of Direct Taxes (CBDT) has fixed the limit in a circular…
Important information related to gold jewelry
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She buys gold ornaments every year from the profit she makes from selling milk to Anita, who is involved in dairy work in Ghaziabad. Recently one of his relatives told that the Income Department (Income Tax Department) If they come to know then their jewelry can be confiscated. After this, Anita has had sleepless nights… Is Anita’s concern really justified… It is important to know about this. gold in the country Control Act (Gold Control Act) already finished. Therefore, there is no restriction on the quantity of gold to be kept. CBDT i.e. Central Board of Direct Taxes (CBDT-Central Board of Direct Taxes) has fixed its limit in a circular…
what is the limit
Under the rules, a married woman can keep 500 grams of gold ornaments. For unmarried women, this limit is 250 grams. Whether the man is married or unmarried, this limit has been fixed at 100 grams for each member in the family. If the Income Tax Department conducts raids, gold jewelery up to this quantity cannot be confiscated.
why the need
Tax and investment expert Balwant Jain says that the CBDT’s circular made it clear that tax officials cannot confiscate gold jewelery up to the prescribed limit, irrespective of the family’s income and status in the society. Even if the family is not in a position to disclose the source of income of this jewellery, then it cannot be confiscated.
Not only this, the CBDT circular does not prohibit that you cannot keep jewelery more than this limit. This rule has been issued for the convenience of the taxpayers. In the event of a raid, if the Income Tax officials seize the gold jewelery then the jewelery up to the prescribed limit will be segregated. He can only take the rest of the jewelery with him.
This circular is not intended to impose any restriction on the quantity of gold jewellery. In case of keeping jewelery in excess of the limit, the Income Tax Department may ask you for their sources. If you provide full details about this, then this jewelery should not be confiscated during the raid.
It should be well understood that this circular does not legalize the ownership of gold jewelery up to the prescribed limit. Even though the tax authorities cannot confiscate the jewelery to the extent prescribed while making the list of assets during the raid. However, the source of the money raised to buy these jewellery, may have to be given.
keep safe receipt
If you have bought jewelery after paying tax on income, then there is no need to worry. For this it is necessary to keep all the purchase receipts safe. Even if you have taken any other jewelery in lieu of these jewellery, it will be in your best interest to keep the receipt of original jewelery and receipts for payment of making charges for new jewellery. It is not necessary that gold jewelery should be purchased through cheque, credit or debit card only.
Gold ornaments can either be bought on their own or can be found as a gift from ancestors. If gold is inherited, then whether it is kept in a bank locker or at home, you must also keep a copy of its will. If possible, handle the income tax returns, valuation reports and wealth tax papers of the person from whom you got this gold. This detail can save you from any unpleasant situation. In future, whenever you are asked about the source of these jewelery and you claim to have inherited it along with the evidence, the Income Tax Officers cannot confiscate them.
Also read- These are 5 great investment tips to save tax before March 31, you will get double benefit
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