The Indian government has come out with a clarification regarding the seizure of gold. After there were rumours spread across the country that personal possession of gold in excess will be seized, the government decided to come up with a clarification so that there is no confusion.

 

Rumours suggested that all gold jewellery, including the ones inherited from the ancestors, shall be taxed 75% plus cess with a further penalty liability of 10% of tax payable.

 

The government of India have brushed aside all these rumours and has said that the existing Bill will continue to remain the same. There will be no changes made to the section 69, 69A & 69B in this case.

 

Here are few things that you need to know which the government has said on Thursday:

 

 

  • There is no limit on holding of gold jewellery or ornaments by anybody provided it is acquired from explained sources of income including inheritance.

 

 

  • Instructions issued in the matter of search and seizure of gold jewellery in 1994 CBDT circular did not change.

 

 

  • 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 assessee.

 

 

  • Officer conducting search has discretion not to seize even higher quantity of gold jewellery based on factors including family customs and traditions.