If the taxpayer fails to supply an explanation, then the gold will be seized under section 132 and it will be taxable u/s 69B checked out with area 115BBE of the Income Tax Act.
The rates prescribed under section 115BBE are 60% plus a surcharge of 25% plus health & education cess @ 4% (Total = 78%) along with a charge of 10% on such tax.

The Central Board of Direct Taxes had provided a press release in Dec 2016, in which it declared that a person could hold gold Jewellery with no limitation supplied that the source of investment or inheritance can be shown. The earnings of the taxpayer must be in line with the quantity of the gold held.

Hence, a specific receiving gold more than the maximum limit inheritance or other modes should state the very same in the income tax return and have correct invoices, deeds and source.

There is a maximum amount of the gold one can hold without billing and shall not be taken by the earnings tax authorities at the time of search in premises. The allowed limitations are:
Wife – 500gms
Single female – 250gms
Male – 100 gms
Please keep in mind even a greater quantity of gold might be left unseized based on the evaluating officers discretion.

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