According to the instruction, income tax officials will not confiscate gold ornaments weighing up to 500 grams for a married woman. The same limit is 250 grams for a single woman. For men, married or single, the CBDT has prescribed a lower limit of 100 grams for each male member of the family. However, according to income tax rules, there is a limit to how much gold you can keep at home.
Kapil Rana, founder and president of HostBooks Ltd, says: “To store domestic gold, it is not necessary to justify a person's income situation if the above-mentioned parameters are met for different categories of people, such as married people, single women and a male member of the family. A married woman can store up to 500 grams of gold, while a single woman can store up to 250 grams of gold, even if she doesn't present her proof of income. Male members are only allowed to have 100 grams of gold without justifying their income level. It's usually more difficult to withdraw gold from a bank, and they rarely offer insurance for your gold collection.
The maximum amount of gold you can own without exceeding it is 500 troy ounces (a little over 21 pounds) of pure gold. Owning gold is now very popular among Americans, so it would be a very difficult political task for Congress to once again ban the possession of gold. When people enter the gold market for the first time, they often think that they should declare their gold bars to the government. The United States government only places restrictions on the amount of gold that can be exported to other countries due to the Gold Standard Act of 1933.Gold bars are especially valuable, since their value depends on gold itself as a precious metal.
As long as you can provide the source of purchase of gold or jewelry, there is no limit so that no one can store jewelry or gold items. Although some investors physically store their own gold, today there are many options for investing in gold without physically owning it, for example, through derivatives, futures contracts and stocks in gold. Although there is no limit to owning gold jewelry or ornaments, but to avoid disputes and ensure uniformity, the Central Board of Direct Taxes (CBDT) issued an order for its officials on May 11, 1994, ordering its officials not to confiscate any gold ornaments or jewels up to a certain limit depending on the sex of the person and whether or not you are married to the family members of the person being raided. If someone exceeds the gold limit or if their investment does not match the level of income indicated on their tax returns, they run the risk that the government will keep the leftover gold in tax raids.
In India, gold is a common form of personal wealth in the form of inherited ingots, coins and ornate gold jewelry that people keep in their possession. If you buy your gold through bank transfers or with a single check, you don't have to worry about paperwork or government interference. Gold is difficult to reproduce, making it easy for an expert collector or investor in gold coins to detect a counterfeit piece. However, this did not last long because in 1971 President Richard Nixon ended the convertibility of the U.S.
dollar into gold and created a fixed exchange rate between paper money and gold. What this circular says is that income tax officials cannot seize gold jewelry up to the specified limit, even if family income and status in society do not justify the possession of so much gold jewelry and ornaments. Roosevelt created a policy, Executive Order 6102, which prohibited the possession of gold ingots and prohibited the possession of gold for monetary gain. .