SAMPLE CHAPTER
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C H A P T E R
How Much Gold Can You Hold
1.1 INTRODUCTION Once, a fairy noticed a 50-year old man and his wife and asked both to make one wish each. The wife said, ‘I want lots of gold.’ She got her wish. The man said, ‘I want a wife, 25 years younger than me.’ Now, the man is saying, ‘I should also have asked for gold and lived happily.’ The fairy had made the man, older by 25 years, so that he was a senior citizen, of 75 years. How much gold can a person have? Many people believe that CBDT Instruction No. 1916, dated 11-5-1994 which specifies how much can be seized during a raid lays down limits to how much jewellery an individual can possess. The Finance Ministry has clarified on December 1, 2018 “There is no limit on holding of gold jewellery or ornaments by anybody provided it is acquired from explained sources of income including inheritance.” However, with apprehensions continuing to persist in the absence of clarity on limit of holding, the ministry came out with another statement hours later saying there is no limit on gold holding from explained sources of income. This means that Legitimate holding of jewellery up to any extent is fully protected.
1.2 CBDT INSTRUCTION NO. 1916, DATED 11-5-1994 The CBDT Instruction No. 1916 (F.No. 286/63/93-IT(INV.II), dated 11-5-1994 is reproduced herein under:— 1