New Delhi, March 2 -- In the midst of a huge surge in gold prices, it would be interesting to know the general practice followed by the income tax department regarding gold holdings.

Presently, there is no law prescribing any limit up to which one can hold gold in bullion form or in jewellery form. However, the Central Board of Direct Taxes (CBDT) vide its very old circular dated 11-05-1994 has instructed its officers not to seize gold ornaments and jewellery up to a certain limit during the course of income tax raids. There are separate limits for married men and women for gold jewellery. As per these instructions, the income tax officers have been advised not to seize and take away gold ornaments belonging to a married lady up to 500 g...