What are restrictions and limits imposed by Central Government on purchase and possession of Gold from 1st December 2016. Finance Ministry, Income Tax department have made new changes in taxation on gold, cash deposits as per Narendra Modi’s fight against black money.
As per news reports Gold limit India is different for Married Women, Unmarried Women and Men of India. As per law married Indian women can keep 500 grams of gold. In case of unmarried women they can keep up to 250 grams of gold in house or lockers. In case of men restriction of gold possession limit is up to 100 grams only. Unmarried women can keep 62.5 pavan of gold, while married women can keep 31.25 pavan of gold and men can keep 12.5 pavan of gold.
Gold purchased using disclosed income with tax paid can be kept in one’s possession. If gold is found to be kept in excess of this limit, source of such gold should be revealed. If not Income tax department will take custody of such unrevealed gold from undisclosed income. There is actually no restriction on quantity of gold that can be purchased per person. Using hard money earned from cash which has sources or for which tax is paid, it can be used to purchase any quantity of gold. There is no limit in maximum quantity of gold that can be possessed. Only condition is that income used for that purchase is a disclosed one. And a person can keep gold with him after disclosing it and paying taxes applicable on it. Problems regarding keeping gold in hand is for those people who have kept more gold than they could actually earn. And if they are not able to reveal source of such purchases, then it will be seized by Income tax department through raids. Through this way Indian Government plans to take custody of gold purchased using black money.
As we all know huge purchases made in gold as investment is done by people who get cash in illegal ways. They are able to possess this much gold because they convert black money into gold.
Gold was thought till now as a safe deposit because there was no taxes applicable in quantity of gold that can be kept.
Why is there a restriction on gold that can be possessed by married and unmarried women. It’s because married women will have more ornaments that they got from their family during wedding.
Along with this ancestral jewellery ornaments held by persons will be exempted from taxes in India. Narendra Modi led BJP government plans to find all people who hold excess gold purchased using black money.
It will be done through raids conducted by Income tax department. Government made it clear that any excess gold kept in hand for which taxes are paid or purchased using disclosed taxed income has nothing to fear.
Only those people who hide their money got from corruptions, scams, bribes .etc. converted in gold has to fear Income tax raids.