Income Tax Rules on Gold Jewelry Storage Limit: Important Update on the Maximum Allowable Amount

According to the gold ownership rule, married women can possess gold jewelry weighing up to 500 grams without the risk of confiscation by tax authorities. Similarly, unmarried women can hold up to 250 grams of gold jewelry without it being subject to confiscation.

The Income Tax Department has provided comprehensive guidelines on the maximum permissible quantity of gold and gold jewelry that can be kept at home without the risk of confiscation. These guidelines ensure that individuals are aware of the prescribed limits to prevent any potential issues with the tax authorities. 

What is the Limit For Gold Storage?

Regarding the amount of gold jewelry that can be kept at home without legal implications, there is no specific limit as long as the source of income used to purchase or invest in the gold can be explained in the event of an income tax investigation. 

However, it is important to note that there are certain limits for possessing unaccounted gold jewelry to avoid tax-related issues. The Central Board of Direct Taxes (CBDT) has outlined the following limits for holding gold jewelry and ornaments without the need to provide supporting documentation:

• Men can hold only 100 grams of gold without providing any proof.
• A married woman can hold up to 500 grams of gold without providing any proof.
• An Unmarried woman can hold up to 250 grams of gold without providing any proof.

Specifically, to ensure that your gold remains safe from confiscation, it is essential to be familiar with the set limits. This information is beneficial for women who want to determine the amount of gold jewelry they can legally retain at home.

Gold Control Act 1968: Previously, the Gold Control Act of 1968 was enforced in India, restricting individuals from possessing gold beyond a specified limit. However, this act was repealed in June 1990, resulting in the absence of any government regulations pertaining to the maximum amount of gold one can possess. As of now, there are no legal restrictions on the quantity of gold that a woman or any individual can retain.

CBDT Guidelines of 1994: In 1994, the Central Board of Direct Taxes (CBDT) issued specific instructions concerning gold ownership. According to these instructions, married women are allowed to possess gold jewelry weighing up to 500 grams without the risk of confiscation by tax authorities. 

Similarly, unmarried women can retain gold jewelry up to 250 grams without it being subject to confiscation. In the case of married or unmarried male members, gold jewelry weighing up to 100 grams will not be confiscated. 

It is important to note that if a person is found to possess a larger quantity of gold without any valid source of income, appropriate action may be taken.

However, the tax law says that If you have received gold as a gift or inheritance, it is necessary to provide supporting documentation and include this information in your income tax return. 

The paperwork that can be presented as evidence includes the receipt received from the individual who gifted you the gold or the relevant documents related to the inheritance. By accurately documenting these transactions, you can ensure compliance with income tax regulations.
 

Also Read: Deadline Today for EPFO Higher Pension Application: Apply Now with Required Documents

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