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How much Gold can you legally possess as per tax laws in India

Gold Jewellery/gold coins/gold bars up to 500 grams per married lady, 250 grams per unmarried lady and 100 grams per male member of the family is accepted as allowed as per tax laws in india. Over and above this quantity, wealth tax is applicable.

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A case where Gold in possession was analysed and judgement was given involving taxation, the judgement has the following included:

'The Assessee's case 4.1 The assessee's explanation towards the impugned credit is of it being the sale proceeds of gold jewellery (1044.300 grams), received by her on the occasion of her marriage in 1982, as well as on the birth of first daughter and first son, as is common in Hindu Marwari families, to one which she belongs, being rather a part of her streedhan. In fact, even the Revenue, in view thereof, vide CBDT Instruction No. 1916 dated 11.05.1994, directs its officers not to seize gold ornaments to the extent of 500 grams in search in the case of a married lady. The jewellery is, further, duly reflected in her wealth tax returns for assessment years (A.Ys.) 2006-07 and 2007-08, and backed up by valuation report (dated 28.12.2007) from an approved Valuer (Kumarpal Umedmad Jain), besides by sales bills issued by the jeweller, M/s. Vimalsons Jewellers, Zaveri Bazaar, Mumbai.'


Above quoted from:
Income Tax Appellate Tribunal - Mumbai:
Chander R. Gupta, Mumbai vs Assessee on 15 January, 2016
https://indiankanoon.org/doc/59744005/
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Ref:
Website of CA (Chartered accountant) A. K. Jain
Article: Don't Panic, if Income Tax Department Raids You.
http://www.tjaindia.com/articles/departmentraids-301110.htm


Haroon Mohd. Unni., Mumbai vs Department Of Income Tax on 9 December, 2013
https://indiankanoon.org/doc/10499313/

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Also note:

As per news in Times of India, same treatment is for Gold jewellery/ gold bars /gold coins:

'NRIs can import gold bars, coins and ornaments up to 1 kg during their visit to India. The only pre-condition being that they should have stayed abroad for a period of six months or more'

Ref: http://timesofindia.indiatimes.com/nri/other-news/Five-things-NRIs-should-know-about-investing-in-gold/articleshow/17006357.cms

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