Maximun Gold – 500 Grams of Gold for married women, unmarried women 250 Grams.
In a fresh rumours doing round in India that Government next surgical strike after demonitization can be on Gold holding. After Narendra Modi’s surgical strike on 500 and 1000 notes there is reports that Government may impose curb on domestic gold holdings.
According to IT Act Section 132 (4) deposit of Gold 500 grams for married women, 250 grams for unmarried women and 100 grams for male may not come under tax and will be levied.
According to Govt clarification there is no limit on holding of gold jewellery or ornaments by anybody provided it is acquired from explained sources of income including inheritance. Jewellery and ornaments to the extent of 500 gms for married lady, 250 gms for unmarried lady and 100 gm for male member will not be seized, even if prima facie, it does not seem to be matching with the income record of the assesse.
Gold sales have hit a low after Government clarification regarding gold holding, Gold sales have already hit by demonitization move by the government.
The jewellery/gold purchased out of undisclosed income or out of exempted income like agricultural income or out of reasonable household savings or legally inherited which has been acquired out of explained sources is neither chargeable to tax under the existing provision nor under the proposed amended provisions