Purchasing gold jewellery is generally a big-ticket expense. Considering the amount you are going to spend while buying gold, it makes sense to preserve your receipts safely. The receipt may not be of any use now, but later you might need it to know the jewellery’s weight, price, date of purchase, or any other related information.
Apart from that, another use of safely preserving gold receipts is that it helps you declare the source of gold if you are needed to show your gold possession in your filing of the income tax return. Also, gold receipts come in handy if there is scrutiny being made in your income tax return.
Therefore, individuals safely preserving all gold-related invoices are not needed to worry about giving details of the source from which they purchased gold. If your income from any source exceeds Rs 50 lakh, then you are required to disclose your gold holdings in your tax filing as per the asset-liabilities schedule.
In case you are holding gold inherited from ancestors, you can disclose the price at which it was bought. If you are not having any details of the original price, then you can declare the fair market price as on 1 April 2001. This is a necessity if you are to stay compliant.
The government has not placed any limit on the amount of gold a person can hold. The Central Board of Direct Taxes (CBDT) has not set a capping on inheriting of gold. However, taxpayers are to provide the income source from which gold was purchased if there is any scrutiny being done.
As per a circular issued by the CBDT in the year 2016, the officials will not seize gold jewellery of up to 100 grams in case of a male, 250 grams for unmarried ladies, and 500 grams for married ladies in a tax raid. The possessed gold will not be seized even if the income details do not match the amount (as mentioned) of gold being held.
Hence, it is essential to have a repository for all your gold related invoices. It will help you when needed and prevents you from going through a lot of hassles.
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Engineer by qualification, financial writer by choice. I am always open to learning new things.