In the wake of demonetisation, several Indians tried hiding their unaccounted wealth by making gold purchase other than real estate. But then dealers and traders in gold jewellery were brought under the purview of PMLA Act or Prevention of Money Laundering and had to mandatorily report huge transactions in gold amounting over Rs. 50,000 to the authorities concerned. But on huge concerns, the order has yet again been reversed.
So, as a check to your portfolio comprising gold, there is a guideline which allows you to hold gold without any limitation on it. But, nonetheless you should be able to provide bills for the same and also the yellow metal should be purchased from the income on which tax compliance has been adhered to fully.
In individual capacity, married women can be in possession of not over 500gm , unmarried 250 gm, males 100 gm. Such amount can be kept without supporting documents that is even in a case when an individual income does not match up with the gold holding. In case of inheritance also, taxmen cannot scrutinize you.
Also, depending on the customs and tradition of the concerned family, the search officer may not confiscate any amount over this value.
Gold value is also to be declared by an individual if his net taxable income is over Rs. 50 lakhs in a financial year.