Archive · 5 Oct 2026
How Families Can Protect Inherited Jewellery From Tax Disputes
A tax search found a large amount of jewellery in Miraj Digvijay Shah's home and family lockers.
He said it had belonged to relatives who had died and to his father's family.
A tax tribunal accepted his explanation.
The article says families should keep papers and other records showing who owns jewellery and how it came into the family.
Old wills, photos, valuation reports and locker records may help when purchase bills are missing.
A new inventory can show what jewellery looks like and what it weighs today.
But it may not show who first owned it or when it was acquired.
The tax department's search thresholds do not mean that jewellery above those amounts is automatically taxable.
Clear, consistent records can help families explain ownership and challenge a tax addition.
The Kolkata Income Tax Appellate Tribunal ruled in favour of Miraj Digvijay Shah after accepting his explanation that jewellery found in a search belonged to deceased relatives and his father's HUF.
The search brought 3,233.11 grams of jewellery, valued at Rs 1.56 crore, under scrutiny.
Wills, succession or family settlement documents, old valuation reports, photographs and locker records can help establish inherited ownership when purchase bills are unavailable.
CBDT search thresholds are generally quantities treated as explained and not requiring seizure; jewellery above them is not automatically taxable.
Families are advised to keep updated inventories and preserve ownership, inheritance, valuation and locker records; current records alone may not establish original ownership or acquisition date.
- Who
- Miraj Digvijay Shah, whose explanation about the jewellery was accepted by the Kolkata Income Tax Appellate Tribunal.
- What
- A tax search put 3,233.11 grams of jewellery valued at Rs 1.56 crore under scrutiny; the tribunal accepted Shah's explanation that it belonged to deceased relatives and his father's HUF.
- When
- The tribunal case date is not stated. The article notes the Schedule AL income threshold rose to Rs 1 crore from assessment year 2025-26.
- Where
- Shah's premises and family lockers; the case was decided by the Kolkata Income Tax Appellate Tribunal.
- Why
- The search raised questions about the jewellery's ownership and source, which Shah said were explained by family inheritance and HUF ownership.
- Jewellery under scrutiny
- 3,233.11 grams
- Stated value
- Rs 1.56 crore
- Tribunal outcome
- The Kolkata ITAT accepted Shah's explanation and ruled in his favour.
- CBDT search thresholds
- 500 grams for a married woman, 250 grams for an unmarried woman and 100 grams for a male member.
- Meaning of thresholds
- The stated quantities are generally treated as explained and need not be seized; jewellery above them is not automatically unexplained or taxable.
- Schedule AL threshold
- The article says the total income limit for filing Schedule AL rose to Rs 1 crore from assessment year 2025-26.
- Suggested records
- Wills, succession or family settlement documents, old valuations, photographs, inventories and locker records.