No tax on gold purchased out of disclosed income!

Amidst all the rumors, the Finance Ministry has clarified that the jewellery / gold purchased out of the following cannot be taxed neither under the existing provisions nor under the new amended provisions:

(a) disclosed income; or
(b) exempted income like agricultural income; or
(c) reasonable household savings; or
(d) legally inherited which has been acquired out of explained sources.

As per the instruction No.1916, during the search operations, no seizure of gold jewellery and ornaments to the extent of 500 grams per married lady, 250 grams per unmarried lady and 100 grams per male member of the family shall be made. Further, the legitimate holding of jewellery upto any extent is fully protected.