How much Gold you can hold?

How much Gold you can hold? by Rishbah Parakh – DNA India

Gold has always been considered as a safe investment tool for Indians and there have been lots of rumours in terms of how much gold you can hold legally. Let us understand this in detail:

How much Gold you can hold?

There is no prescribed limit for you to hold any amount of gold jewellery or ornaments provided you are able to explain the source. What it means is that as long as you are holding any jewellery item bought out of your savings from already taxed money or may have received it via inheritance, there is no limit.

What proof can be shown to justify the source?

The tax invoice you get on purchase of gold from your jeweller is the best proof to justify your investment. And in case the gold was received via inheritance or a gift then you need to submit a copy of “will” or any family settlement document, gift deed or a receipt in the name of a person who had gifted you. Even your social status, your community’s traditions or customs can also work as a proof but in that case, it depends on the discretion of the concerned officer.

What happens if you cannot justify the source?

In case you cannot justify the source then the officials have the rights to seize your gold to the extent it is not matching your income level as reported in your tax returns. But there is a relief which is given on the amount of gold you can hold up to a specified limit up without justifying the source. What it means, is that even if you do not any proof of where the gold has come from, then also the officials cannot confiscate your gold. In fact, ​Central Board of Direct Taxes (CBDT) has come out with a clarification on December, 1 2016 because post demonetization, there were many rumours around this. This particular CBDT clarification reinforces the previous directions issued in the year 1994 with respect to the amount of gold one can hold without attaching any seizure during any income tax raid or proceedings.

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The Daily Coin

Rory Hall, The Daily Coin. Beginning in 1987 Rory has written over 1,000 articles and produced more than 300 videos on topics ranging from the precious metals market, economic and monetary policies, preparedness as well as geopolitical events. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver, Silver Doctors, SGTReport, and a great many more. Rory was a producer and daily contributor at SGTReport between 2012 and 2014. He has interviewed experts such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Gerald Celente and Peter Schiff, to name but a few. Don't forget to visit The Daily Coin and Shadow of Truth YouTube channels to enjoy original videos and some of the best economic, precious metals, geopolitical and preparedness news from around the world.