IT Raids: How Much Gold is Safe? Know CBDT's Limits for Seizure!

• CBDT Instruction No. 1916 specifies gold jewelry limits safe from seizure: 500g for married women, 250g for unmarried women, and 100g for men.
• This exemption applies only to gold jewelry and ornaments; gold coins, bars, or other forms are not covered.
• Income tax rules consider the weight of gold, not its market price, for tax action.
• Gold purchased from declared income has no upper limit and is completely safe from seizure, provided its source is legitimate and documented.
• If gold exceeds prescribed limits, the Income Tax Department can question its source; satisfactory explanation (inheritance, gift, declared income) is crucial to avoid seizure under Section 132.

Why It Matters: Understand CBDT gold limits and maintain source records to protect your gold from IT seizure.