Government introduces new guidelines on keeping Gold- All you need to know

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After the bold move of demonetisation in an effort to curb black money, the government has now set it’s sight on gold. However, you need not worry as your gold in the locker is safe. Killing all the rumors, the government made it clear that there is no limit to keep legitimate gold which includes from inheritance. Your gold and jewelry will not be seized up to a certain limit, even if it does not match your income.

This has come as a major relief to most of the Indian women as gold is an integral part of their life. There had been many rumors circulating about gold in the society but now the government has put all those rumors to rest.

The finance ministry said that there is no limit on keeping gold or gold jewelry for anyone as long as it is from explained source of income.

Finance ministry first released a statement saying that  the new Taxation Laws Amendment bill will not apply to gold purchased from disclosed income, including those acquired through inheritance or agricultural income.

The Lok Sabha earlier this week passed the Taxation Laws (Second Amendment) Bill, which proposes a steep up to 85 per cent tax and penalty on undisclosed wealth that is discovered by tax authorities during search and seizure.

However, there was still unclarity about the limit of gold keeping. Later the ministry clarified that there is no such limit on legitimate gold.

The gold purchased from disclosed income, agricultural income, reasonable savings or legally inherited is not chargeable to tax under existing provisions or under proposed amended provisions.

The government came up with more good news for the public, especially women by highlighting instruction no. 1916 issued in the year 1994. It says that gold or jewelry up to 500 grams for married women, 250 grams for unmarried women and 100 gram for per male member of the family will not be seized.

This means that married women can keep up to 500 grams, unmarried women up tp 250 grams and man up to 100 grams of gold even if it does not match their revealed income.

It further stated that legitimate holding of jewellery up to any extent is fully protected.

The government has given discretion to the officers who are conducting the search to not to seize an even higher quantity of gold  based on factors including family traditions, status and customs. If a family can give the necessary details about the gold which exceeds the limit set by the government then an officer can choose upon his judgment not to seize it. However, in such a case the officer will have to report to the director of Income-tax/Commissioner .

Earlier, the Central Board of Direct Taxes (CBDT) had issued a statement saying the government has not introduced any new provision regarding tax on gold or jewelry.

HIGHLIGHTS

• There is no limit to keep legitimate gold bought from disclosed sources.
• Married women can keep 500 grams at home.
• 250 grams per unmarried women is allowed.
• Per male member of the family is allowed to keep 100 grams.
• There is no limit to keep legitimate gold bought from disclosed sources.

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