How much gold can you hold?
There is no limit! Yes, that is right. There is no limit on the amount of gold jewellery or ornaments you can own as long as you can justify where they came from. According to tax experts, if you can justify the origins of your gold investment, you won’t have to worry. Even if the assessee’s premises are scanned, gold below this cap will not be confiscated.
- A married woman can hold gold up to 500 grams of gold.
- An unmarried woman can have up to 250 grams of gold.
- A man can have up to 100 grams of gold.
|Married woman||500 grams|
|Unmarried woman||250 grams|
There is no limit to the amount of jewellery you will own if you purchased it with already-taxed money or got it as an inheritance.
The Income Tax Act of 1961, Section 132, gives the Indian tax authorities the power to seize any unidentified jewellery, bullion, or valuable articles discovered during a search.
In a press release dated December 1, 2016, the Central Board of Direct Taxes (CBDT) stated that there is no cap on keeping gold jewellery if the source of investment or inheritance can be clarified.
The taxman, on the other hand, has the right to check or challenge the source of gold kept at a residence or in a bank locker.
Income tax officers are not permitted to seize any gold jewellery within the limits specified in the circular, regardless of the person raided’s socioeconomic status or level of living.
It is worth noting that the circular only applies to gold ornaments and jewellery and, by implication, does not apply to gold coins, gold bars, or diamond or other jewellery.
What proof is valid?
The invoice you get from your jeweller when you buy gold is the best evidence of your investment. If the gold was inherited or given to you, you must request a copy of the “Will” or some other family settlement agreement, gift deed, or receipt in the name of the individual who gave it to you.
If no such record is available, the officer may consider your family’s social standing, customs, and traditions in order to determine whether or not your argument is true.
So, if you bought the jewellery with your tax money, there is no need to be concerned if you can prove the source of funds used to purchase it
It is highly recommended that you keep all transaction invoices. If the jewellery you purchased was traded for something else, it’s a good idea to keep all of the invoices for labour costs, as well as the initial purchase invoice.
The jewellery does not have to be purchased with cheques or credit/debit cards; it can also be purchased with cash. However, income tax laws prohibit any cash purchase of more than Rs. 2 lakhs.