Here comes another move from Government of India as part of its efforts to curb circulation of black money. The finance minister has clarified that the gold above the quantity of 500 grams can be seized by the income tax authorities for scrutiny. The amended Income Tax law has provisions in this regard.
The latest laws on gold will not apply to tax jewellery / gold purchased out of disclosed income or exempted income or reasonable household savings. There will not be any tax on ancestral jewellery and gold at certain limits. The Finance Ministry has put limitations on the possession of Gold:
Married Women: 500 grams
Unmarried Women: 250 grams
Male: 100 grams
There is no limit on holding of gold jewellery or ornaments by any individual provided it is acquired from disclosed sources of income including inheritance. The possession of gold in the above limitations will not be seized even if it does not match the income records.
The Government of India has already given nationwide instructions to the IT department in the matter of search and seizure of unaccounted gold jewellery. The move is part of the restrictions on gold holdings on individuals as many landed up at jewellery shops after notes were banned and converted their unaccounted wealth in the for of gold.