Delhi/Alive News: The Supreme Court has clarified that the exemption from seizure of gold jewellery during income tax searches does not automatically establish its legal ownership. The court said that the protection allowing married women to keep up to 500 grams of gold without seizure cannot be treated as proof that the jewellery was acquired through legitimate sources of income.
A bench of Justice K.V. Viswanathan and Justice Arun Palli observed that non-seizure of gold and ownership of gold are two different matters. The ruling came while hearing a disproportionate assets case involving a former Bihar government official.
What is the case?
The Bihar Vigilance Department registered a disproportionate assets case in 2015 against Phoolpari Kumari, a former Child Development Project Officer (CDPO). Investigators recovered 646.400 grams of gold jewellery from her possession.
She argued that under the existing guidelines, up to 500 grams of gold for a married woman and 250 grams for an unmarried woman could not be seized during an income tax search.
The Patna High Court quashed the proceedings against her in May. However, the Bihar government challenged the decision in the Supreme Court. The apex court overturned the High Court’s order and restored the proceedings.
What are the rules for keeping gold at home?
Under the existing CBDT guidelines, gold jewellery up to 500 grams for a married woman, 250 grams for an unmarried woman and 100 grams for a man is generally not seized during income tax searches.
There is no fixed legal limit on the total amount of gold a family can own. However, the owner may need to establish its legitimate source if questions arise during an investigation.
The Supreme Court’s clarification does not mean that every household must immediately submit bills for its jewellery. However, keeping purchase receipts, inheritance documents and other relevant records can help establish the source of gold when required.
