In India, gold is bought more for wear than investment. Most of the people in the country buy gold jewelery to give at weddings, to keep at home and to wear. It is bought more as a security for the future than as an investment. However, in the last few years, many options for investing in gold have emerged.
In India, gold is bought more for wear than investment. Most of the people in the country buy gold jewelery to give at weddings, to keep at home and to wear. It is bought more as a security for the future than as an investment. However, in the last few years, many options for investing in gold have emerged. These include gold ETFs, sovereign gold bonds, gold funds of mutual funds. Despite this, the value of physical gold has not decreased. Many times people buy gold jewelery and keep it at home. Do you know how much gold you can keep at home?
What are the instructions of CBDT?
Gold has been found in income tax raids in the form of gold jewelery or in other forms. The reason for this is that there is an old tradition of keeping gold in homes in the country. Therefore, it is not right to have doubts about gold jewelery or any other form of gold. Keeping this in mind, the Central Board of Direct Taxes (CBDT) had issued an instruction in 1994. This instruction of CBDT was for Income Tax officers. It was said that during the raids, gold jewelery or gold in any other form should not be seized up to a certain amount. For this, separate limits of quantity were fixed for family members.
What is the limit as per CBDT instructions?
If a married woman is found with gold jewelery weighing up to 500 grams, it will not be confiscated by the tax authorities. If an unmarried woman is found with gold jewelery up to 250 grams, it will not be confiscated. Gold jewelery up to 100 grams of any married or unmarried male member will not be confiscated. The thing to note is that this quantity limit is for one member of the family. This means that if there are two married female members in the family, the total limit will increase from 500 grams to one kilogram. The purpose of this instruction of CBDT was to keep the recovery of every gold jewelery out of the confiscation process. The number of disputes increases with the seizure of every gold jewellery.
It is important to understand that this instruction of CBDT does not give any legal right to keep gold jewellery. It also does not set legal limits. Its purpose is to provide relief to taxpayers only from the seizure of gold jewelery during raids. It is also important to understand that these instructions only apply to family jewelry or other jewelry. If gold jewelery is found in the possession of any member outside the family, it can be confiscated by the tax authorities.
What is Gold Control Act 1968?
Earlier Gold Control Act, 1968 was in force in India. Under this, people were not allowed to keep gold more than a limit. But, this Act was abolished in June 1990. Again, the government did not introduce any law that sets limits on gold holdings. Currently, there is no legal limit on how much gold a person or family can keep.
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