Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

New Delhi, 01 December, 2016.

PRESS RELEASE

In order to remove any doubt about the current position of Income Tax Law with respect to gold jewellery, the following points are categorically clarified:

• There is no limit on holding of gold jewellery or ornaments by anybody provided it is acquired from explained sources of income including inheritance
• Vide circular dated 11.5.1994, instructions have been issued in the matter of search and seizure of gold jewellery.
• Jewellery and ornaments to the extent of 500 gms for married lady, 250 gms. for unmarried lady and 100 gm for male member will not be seized, even if prima facie, it does not seem to be matching with the income record of the assesse.
• Officer conducting search has discretion not to seize even higher quantity of gold jewellery based on factors including family customs and traditions.

(Meenakshi J. Goswami)

Commissioner of Income Tax

(Media and Technical Policy)

Official Spokesperson, CBDT.

Gold jewellery holding: specified non-seizure thresholds for individuals and officer discretion preserved under income tax law. Income tax law permits holding gold jewellery from explained sources of income, including inheritance. Existing search and seizure instructions under the 1994 circular are reiterated, and specified non-seizure thresholds are set for married women, unmarried women, and male members. The officer conducting a search has discretion to not seize larger quantities based on family customs, traditions, and other contextual factors.