Indians love gold and our country is one of the largest consumers of gold in the World. Gold is purchased for various reasons like marriages, auspicious occasions and just for the love of wearing it. Gold is considered to be one of the safest investment options available as it can be sold for cash when you are in urgent need. Gold does not mean only the gold jewelry. It also includes gold coins, gold bars, and other forms of gold.
When it comes to keeping gold at home, many people believe they can keep any amount of unaccounted gold at home. At the same time, they also believe that gold is beyond the Income-Tax department and the Enforcement Directorate (ED’s) jurisdiction. But, the fact is, you cannot keep any amount of unaccounted gold at home, just by saying it’s a woman's wealth. According to the rules, there is a prescribed quantity of gold you can keep at home.
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You should know there is no limit on the amount of gold jewelry or ornaments you can hold, provided you can explain the source of income or there’s an inheritance.
However, there are separate limits for the unaccounted gold that men and women can keep at home.
In the year 2016, CBDT had clarified on the amount of gold you can hold. If you hold gold within this limit, it will not be seized even at the time of a search at your premises.
The above mentioned quantity can only be held by the members of the family. If the jewelry belonging to any other person is found; the same can be seized and confiscated.
The income tax department cannot seize gold jewelry up to the prescribed limit, even if the family's income does not warrant the capability of the family to have that amount of gold jewelry and ornaments.
Normally, the tax invoice issued by the jeweler is the best proof of your investment in gold. Apart from the tax invoice, you must have a separate proof in case of inheritance and gifts.
In the case of inheritance or gifts, you must provide a receipt in the name of the initial owner of the item. You can submit a family settlement deed, WILL, or a gift deed stating the transfer of such a commodity.
The above-mentioned quantity of gold is only applicable to individual taxpayers. If there is a single locker having jewels from multiple families, then the limit will be increased to the total of the limits for each individual taxpayer. In such cases, it is good to have a joint locker in names of taxpayers from each family.
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