1. How much gold can I keep at home: Here is what you can legally possess without worrying about taxmen

How much gold can I keep at home: Here is what you can legally possess without worrying about taxmen

The festive season is here again and also time to buy gold. However, how much gold you can legally hold?

By: | Published: September 21, 2017 10:35 AM
gold, Buying gold, buying gold this festive season, worrying about taxmen, I-T raid, how much gold you can hold, CBDT, taxpayer Even if one is honest, but one’s image can get sullied if there is an income tax raid at one’s premises.

The festive season is here again and also time to buy gold. After all, buying gold is considered auspicious during such times, and is believed to bring prosperity and good luck going ahead. However, the million-dollar question which many of us often ignore is: How much gold a person can hold or, to make it more explicit, is allowed to hold in the present times in India?

The question assumes importance particularly in view of the recent changes in income tax laws as well as the government’s thrust on unearthing black money. Even if one is honest, but one’s image can get sullied if there is an income tax raid at one’s premises. So, what to do in these circumstances to remain legally correct as also to keep income tax authorities at bay?

Tax experts say that you need not worry if you are able to explain the source of your investment in gold.

“It may be recalled that CBDT, in its press release dated 01 December, 2016, had clarified that there is no limit on holding of gold jewellery or ornaments by anybody provided he is able to explain the source of such investment. However, in case any search is conducted for the taxpayer, the tax officials can confiscate the gold and/or jewellery if it is found that the investment is not in line with the income level of the assessee as reported in his past tax returns,” says Chetan Chandak, Head of Tax Research, H&R Block India.

Even in this case, however, it has been clarified that jewellery and ornaments to the extent of below limits will not be seized, even if prima facie it seems to be disproportionate with the income records of the assessee:

# 500 grams for married lady,

# 250 grams for unmarried lady and

# 100 grams for male member

Further, the officer conducting a search has discretion not to seize even higher quantity of gold jewellery based on factors, including family customs and traditions.

It is clear, thus, that if the investment in gold or jewellery is in line with the income of the taxpayer and/or the taxpayer is able to explain the source of that investment/inheritance, he has no reasons to worry.

What kind of proof may be required?

Generally the tax invoice issued by a jeweler is the best proof of your investment in gold. However, “in case of inheritance or gift you can produce proof such as receipt in the name of original owner, family settlement deed, Will, gift deed, etc. If you don’t have any such document, then the officer will try to match it based on factors such as family social status, customs, traditions, etc., but then it goes to the discretion of the tax officer,” informs Chandak.

What precautions to take?

You need to remember that the limits stated above for search and seizure are for individual taxpayers and in case you have a single locker in which you are depositing the gold belonging to different family members, then the limit will be enhanced to the total of the limits for each individual taxpayer. In this case, however, it is advisable to have the locker in joint names to avoid any complication.

  1. S
    Suhas
    Sep 23, 2017 at 10:08 am
    If this happens the gold rates will definitely drop down. No body can restrict even a vegetable seller will have a minimum of 100 grams.
    Reply
    1. A
      aravind
      Sep 22, 2017 at 8:17 am
      This is what happens when govt is held by parties like bjp...Who don't care about the personal matters of its citizens... aagayena ache din....Is this what we were waiting for...And is this why we voted this bloody party...Due to demonetization they already sucked off common man's money....And now even their jewelry also...After some days they will ask us to buy only one house...Only one bike...You are eligible to go only to this particular restaurant...With your income you cannot fly in an aircraft...You cannot go on honeymoon to another country....You should not go to multiplex..U should watch a movie in local theatre...Based on our income...kaisa govt h bhai....pehle GDP ko kaise badana hai vo sochiye...Jo sabse jyaada tumhare govt me neeche aagaya... baadmein logon ka jewelry ke baare mein sochlena....Ye sab scam h agle baar elections me kisike paas paise nahi hone chahiye...sirf govt ke paas hone chahiye thaaki vahi log phirse jeet sake...
      Reply
      1. K
        K.Mundanad
        Sep 21, 2017 at 7:13 pm
        As regards tax raids: just for laughs. According to a wag, well before the event, an anonymous call would be received by those having possession of 'excess gold' about the impending raid, so that they could shift their hidden assets (major portion) elsewhere. After the raid takes place, the informer would call again to claim his share, as mutually agreed: it would be shared by all those who plotted the script.
        Reply

        Go to Top