Gold limit at home: The income tax department will send a termination if you keep more gold than this limit at home

The question still arises that you cannot keep jewelry above this limit? According to the rules, the income tax department can ask you about the source if you keep jewelry above the limit. If you provide complete details, this jewelry should not be confiscated during the robbery.

When we talk about the favorite activity of women, then the first name that heads us is gold jewelry. In such a situation, the question arises whether this gives a fixed limit? Can the income tax department take measures against you if you keep jewelry above a certain limit? So let us know that the Central Board of Direct Taxes (CBDT) has set its border in a circular.

According to the rules, a married woman can keep 500 grams of gold jewelry. For an unmarried woman, this limit is 250 grams. In men, the situation is a little clearer. Whether married or unmarried, this limit was set for 100 grams for each family member. This means that if the income tax department is taken over, the gold jewelry cannot be confiscated until this amount.

Income tax for the sale of gold

If gold is purchased before January 1, 2001, the costs for the acquisition of such a gold will be higher of:

(i) The actual costs for the acquisition of gold or

(ii) The fair market value of gold on January 1, 2001.

An exemption from RS. 1,25,000 on LTCG is available if the profit is due to gold or gold or gold MFS.

Tax effects on the confiscation of gold

If such gold jewelry and ornaments are confiscated, the attachment must explain the legitimacy and source of income for the activity of such investments and the proof of the activity of such investments, e.g. B.:

• A tax bill for the purchase of gold or
• Transaction that represents the transfer of money by recognized bank channels;
• In the case of the inheritance, it can be an original invoice on behalf of the first recipient, a will or a family accounting contract, or
• In the event of a gift, it can be an original invoice on behalf of the donor or a gift certificate.
• If the attachment does not offer an explanation or the reason given is not satisfactory, the amount of this gold is to the fixed interest rate of 60% + 25% plus 4% tax liability, which corresponds to the tax rate 78%. In addition, a penalty of 10% is paid for this tax via this tax.

Income tax on gold jewelry/gold bars/gold etts/gold MFS that were received as a gift

If you receive gold jewelry/Bullion/Gold ETFS/Gold MfS as a gift, the entire market value of the gold preserved is taxable if it exceeds 50,000 RS in one year. Based on your income class, it is taxed under the transition “Income from other sources” to record rates.

Nevertheless, the law grants tax exemptions under the following circumstances under which the gift is not taxable:

• If the total amount of gold you receive as a gift in a year
• When the gifts come from the family listed below:
• Parents and siblings
• Spouses – brother or sister of your spouse
• The ancestor or descendant of your spouse (e.g. children, parents, grandparents, etc.)
• Gold that was recorded on the occasion of their marriage
• Inherited from gold inherited from a will
• GST when buying gold
• For gold purchases, GST is charged with 3% and 5% for the goldenhornae.
• If you exchange gold (e.g. bars or coins) for new jewelry, no GST is imposed on the weight of the exchanged gold. The GST is subject to only the value of the overweight.
• However, no GST would be charged for the sale of gold by individuals. You can find details in articles.

Tax and investment expert Balwant Jain says that CBDT’s circular has made it clear that gold is not confiscated to the prescribed border regardless of the family’s income. In the event of an income tax action, the jewelry is separated to the prescribed limit. The income tax department can only take the remaining jewelry with them.

The question still arises that you cannot keep jewelry beyond this limit? According to the rules, the income tax department can ask you about the source if you hold jewelry beyond the limit beyond the border. If you provide complete details, this jewelry should not be confiscated during the robbery.

However, it is not the case that they are not questioned if they keep jewelry to the prescribed border. According to the rules, you may have to give details of the source of money in order to buy the jewelry defined during the raid within the border. In such a situation, it is important that when buying jewelry, the receipt will safely keep with you. Apart from that, it will be in your interest to keep the income for payment of fees for new jewelry safe.