Kerala Financial ministry released an order on Thursday, 1 December 2016 regarding Gold restrictions India. Amount of gold that can be kept in custody of a person is being implemented. Gold ornaments legally inherited from ancestors does not come under law. All other gold should be disclosed before Income tax in your returns. Gold in your possession in bank lockers, house, office will be liable as per Income tax. Gold ornaments, coins, gold deposits for which tax is paid can be kept.
Married women can keep up to 62.5 pavan of gold which is equal to 500 grams of gold. Unmarried women can keep up to 31.25 pavan of gold which is equal to 250 grams of gold. Men are allowed to keep only 12 pavan of gold which is equal to 100 grams of gold. Ancestral gold that is in possession of individuals or families do not come under this limit. This limit on gold restrictions Inida is made for finding black money hidden in form of gold.
Any excess gold in form of gold ornaments , biscuits or coins in lockers, houses will be searched and taken custody by income Tax department. You have to worry only if you have excess gold than above mentioned gold limits and you have not disclosed it before Income tax. All steps taken by Narendra Modi led BJP – NDA government including demonetisation, gold possession limits are justified in name of action against black money.
Recently after demonetisation crores of black money was used by people to purchase gold from jewelry shops. Even on night when Narendra Modi announced demonetisation of currency, there were many jewelry shops that opened till late hours to sell gold at premium rates.
With new decision by Finance Ministry of India Income Tax department is getting legal permission to raid anywhere to find gold that is not disclosed and taxes are not paid.
This is biggest news after demonetisation of currency in India on 8th November 2016. There had been many speculations regarding restricting gold import or imposing gold import ban for jewelry shops.
But recent move by Narendra Modi led Indian Central Government is tougher than that. With this new order for bringing regulations on gold possessions for each person, Government is cutting out gold sale by a huge percentage.
Demand for gold in India will decrease which will affect all gold merchants, jewelry shops. Levying of taxes on gold possession and need to disclose gold that is in hands of each person will be tougher to everyone.
This will remove love for gold and investment in gold by everyone including black money holders.