A married woman is allowed to keep at least 500gm of gold with her. For the unmarried woman, the prescribed quantity is 250gm, said a report by Kotak Life.
According to government rules, authorities can not seize ornaments or gold during raid or search operation if the gold quantity is under the prescribed limit.
The CBDT rules say that if the gold or jewellery is purchased with disclosed source of income like agriculture, household saving or legally inherited, then that gold won't be subject to any tax.
The rules further sates that there is no limit on keeping the gold or jewellery as long as they are bought using known sources of income.
If you decide to sell your gold in less then three years of purchasing it, then that is subjected to a short term capital gains tax at income tax slab rates.
The capital gains will be taxed at 20 per cent indexation benefit (indexation benefit is used to adjust the rate of gold purchase after inflation) plus 4 per cent cess.