Rumours that the government will come after your gold after demonetization were put to rest by the Ministry of Finance (MoF) on Thursday.
The MoF said that jewellery up to 500 gm per married lady, 250 gm per unmarried lady and 100 gm per male member of the family will not be seized in the event of an income-tax (I-T) raid.
“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 Finance Ministry said in a statement.
Legitimate holding of jewellery up to any extent is fully protected.
The government said it has issued directions that officers conducting search have discretion not to seize even higher quantity of gold jewellery based on factors including family customs and traditions.
Dispelling rumours that jewellery would be covered under the amended law, the Central Board of Direct Taxes (CBDT) earlier in the day issued a statement saying the government has not introduced any new provision regarding chargeability of tax on jewellery.
CBDT said: “Tax rate under section 115BBE is proposed to be increased only for unexplained income as there were reports that the tax evaders are trying to include their undisclosed income in the return of income as business income or income from other sources.
“The provisions of section 115BBE apply mainly in those cases where assets or cash etc. Are sought to be declared as ‘unexplained cash or asset’ or where it is hidden as unsubstantiated business income, and the Assessing Officer detects it as such.”