Political and Democracy Bureau
There is no limit on holding of gold jewellery or ornaments by anybody provided it is acquired from explained sources of income including inheritance, the government of India clarified with respect to current position of Income Tax Law.
The Lok Sabha earlier this week has cleared Taxation Laws (Second Amendment) Bill, which seeks upto 85 percent tax and penalty on unaccounted wealth.
After this, there was a panic situation across the country as it was widely believed that jewellery would also be covered under the amended I-T laws. However, the Central Board of Direct Taxes (CBDT) has thrashed all such rumours by providing clarification on the same.
"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," the government said.
"Officer conducting search has discretion not to seize even higher quantity of gold jewellery based on factors including family customs and traditions," the clarification further added.