According to the instruction, income tax officials will not seize gold jewelry up to 500 grams for a married woman. The same limit is 250 grams for an unmarried woman. For married or unmarried men, the CBDT has prescribed a lower limit of 100 grams for each male family member. In other words, the Treasury covered the price of gold by selling government securities on financial markets to keep the pile of gold high, but they were not converted into currency in the Treasury Department.
We in India had the Gold Control Act in 1968, which prohibited citizens from owning more than a certain amount of gold. This circular states that income tax officials cannot seize gold jewelry up to the specified limit, even though family income and status in society do not justify owning so much gold jewelry and jewelry. Although there is no limit to which you may own gold jewelry or jewelry, in order to avoid disputes and ensure consistency, the Central Board of Direct Taxes (CBDT) issued an order for its officials on 11.05.1994 not to confiscate gold ornaments and jewelry up to a certain limit, which depends on the person’s gender and whether or not you are married to the family members of the robbed person. The Treasury Department has introduced its own gold sterilization policy to prevent inflation from rising due to an increasing inflow of gold to the US.
The tax officials can therefore confiscate all gold coins, gold bars and jewelry found during the raids, even if the weight of the coins is within the established limits, unless you are able to prove that they were purchased. While some higher courts have ruled that ownership of gold jewelry up to the specified limits cannot be added to taxpayers’ income, I am still of the opinion that while income tax officers may not seize and abandon the jewelry, once the gold jewelry is registered and recorded, you may still need to state the origin of that jewelry, otherwise the matter may lead to litigation. The CBDT instruction only applies to gold jewelry and not to gold in any other form or to jewelry of any other type such as diamond jewelry, gemstones, etc. Following the passage of the Gold Reserve Act, several people were charged with violating the clauses that restricted the possession and trade in gold.
The increase in gold reserves due to the price change led to a large accumulation of gold in the Federal Reserve and in the USA. Gold bars are particularly valuable because their value depends on gold itself as a precious metal. Was a result of the inflow of gold caused by the appreciation of gold and the flight of capital to the United States. These bans were relaxed from 1964 onward — on April 24, 1964, gold certificates for private investors were allowed again, although the obligation to pay the certificate holder in gold species upon request was not met.
This price change gave gold mining companies around the world an incentive to expand production and foreigners to export their gold to the United States, while devaluing the US at the same time.