Gold Rule: Tax Authorities Will Not Confiscate Gold Jewelery Up to a Certain Limit

If a married woman gets gold jewelery up to 500 grams, then the tax authorities will not confiscate it.
If an unmarried woman gets gold jewelery up to 250 grams, then it will not be confiscated.

New Delhi

There is a complete account of how much gold or gold jewelery you can keep at home, as per the blueprint drawn by the Income Tax Department. If you want to ensure that the income tax department does not confiscate the gold kept at home, it is important to know the limit. This news is particularly useful for women who are interested in knowing how much gold jewelery they can keep at home.

Gold Control Act 1968

The Gold Control Act 1968 was previously applicable in India, which restricted people from keeping gold beyond a certain limit. However, this act was abolished in June 1990, and since then, no specific rule regarding the limit of keeping gold has been enforced. There is no legal limit on how much gold a woman or person can possess.

Guidelines from CBDT

In 1994, the Central Board of Direct Taxes (CBDT) issued instructions regarding gold possession. According to these guidelines:

A married woman can possess gold jewelery weighing up to 500 grams without the fear of confiscation.
An unmarried woman can possess gold jewelery weighing up to 250 grams without the fear of confiscation.
A married or unmarried male member can possess gold jewelery up to 100 grams without the fear of confiscation.
However, if a person is found in possession of a larger quantity of gold without any legitimate source of income, action can be taken.

Tax Law

If you have received gold as a gift or inheritance, it is important to keep the necessary documents. These documents should also be mentioned in your income tax return. The receipt received from the person who gifted you the gold can serve as valid proof.