He alleged the Centre was trying to "instill fear" among people while claiming the move would only promote "inspector raj" in the country.
Seeking to quell rumours, the Centre yesterday said there is no limit on legitimate holding of gold jewellery, including from inheritance, and there would be no seizure up to a certain limit even if that does not seem to match the income.
"It seems that Income Tax Department will raid every household and check almirah and pull out jewellery of women," Kejriwal said.
"Centre is now saying there is exemption on jewellery given by mother-in-law or mother to her daughter-in-law or daughter, but how the Centre will prove it," the Delhi CM asked.
"For instance, if a mother is dead, how will people prove that gold was given by her...Due to this, especially women will face a lot of problems. Modiji has ruined people's business and snatched jobs," Kejriwal alleged.