It has come to our knowledge through media news that the Government/ CBDT has restricted the Gold Holding for an Household after demonetization of Old Currency Notes to the following Limits:-
- Married Women – 500 Grams
- Unmarried Lady – 250 Grams
- Men – 100 Grams
We hereby clarify that these news items are factually incorrect and based on rumours and half baked information. The facts of the issue are noted below:-
FACTS OF THE ISSUE
- The aforesaid news is spread on the basis of CBDT Instruction No. 1916 dated 11-05-1994 in which CBDT has prescribed relief of the amount that will not be seized during a Search. The draft Instruction is enclosed as Annexure – I;
- The limits prescribed above are in the form of Relief to a Family during the course of Search u/s 132 of the Income Tax Act, 1961 – wherein the Gold found during a search u/s 132 shall not be seized to an extent prescribed above;
- No instruction has been issued by the Government after Demonitisation to restrict the Gold Holding of an Individual/ Family from any disclosed sources of Income or exempted income or inherited by an individual;
The Central Government has issued a clarification on 01-12-2016 in this regard (copy of the clarification is enclosed as Annexure – II). The caption of the Clarification is noted below:-
“Government clarifies that the apprehension sought to be created that the jewellery with the household which is acquired-out of disclosed sources or exempted income shall become taxable under the proposed Taxation Laws (Second Amendment) Bill, 2016, is totally unfounded and baseless.”
The country is passing through a paradigm change and it is very essential for the public to avoid any Panic based on unverified Media Reports or Social Media messages. We will be happy to provide any further clarification or information in the aforesaid matter.
