Income tax: Gold prices have made a huge rally on Coronavirus fears. In fact, if we go by the commodity experts’ views, the yellow metal is further expected to hit Rs 50,000 per 10 gm levels by the end of 2020.
Income tax: Gold prices have made a huge rally on Coronavirus fears. In fact, if we go by the commodity experts’ views, the yellow metal is further expected to hit Rs 50,000 per 10 gm levels by the end of 2020 as the precious metal will continue to remain investors’ haven. In such a scenario, people are expected to buy more bullion. However, during this buying spree, it is important for all to know that there is a ceiling on how much one can hold uncounted gold at home. So, don’t live with the myth that gold at your home is a ‘Stree Dhan’ and it is beyond the Income-Tax department and the Enforcement Department (ED) jurisdiction. According to tax and investment experts, you should have proper documentation of the source of gold at home.
Speaking on the limit you can hold unaccounted gold at home, Mumbai-based tax and investment expert Balwant Jain said, “As per norms, the income tax officers have been advised not to seize and take away gold ornaments belonging to a married lady up to 500 grams. The limits prescribed for an unmarried female is at 250 grams. However, for a male whether married or unmarried a lower limit of 100 grams each are prescribed. Let us understand the implications of this circular and the care one should take in respect of gold owned by them.”
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Speaking on what wealth means for the income taxpayer, Sunil Garg, an independent tax expert said, “If someone has income below Rs 50 lakh, then they will have to file ITR-1 form, which does not seek the details of an assessee’s wealth. However, if your income is above Rs 50 lakh your income tax form will have a schedule asking for the details of your wealth that includes gold and jewelry. So, when your income goes past Rs 50 lakh per annum, you should make an item wise list of your wealth including gold and jewelry.”
Also Read: New income tax return forms: Which ITR form is for you? Find out
Asked about the guidelines one can follow in regard to gold and jewelry, Garg said, “One must get the valuation done before filing the ITR. Generally, a person gets gold and jewelry through these sources — Purchase, marriage, paternal and gifts. So, keep the invoice for the gold or jewelry purchased. If the source of gold and jewelry is marriage, then list out who gifted which item. If the source of gold and jewelry is through the paternal source, make a will of the gold and jewelry. However, if the source is gift-based, have a gift deed to answer the income tax questions in the schedule of your ITR form.”
