In India, gold is often purchased primarily for wearing rather than as a pure investment.
While many investment options like Gold ETFs, Sovereign Gold Bonds, and Gold Funds of Mutual Funds have emerged, the allure of physical gold, especially in the form of jewelry, remains strong.
But how much gold can you legally keep at home? Here’s what the law says.
Legal Limits for Gold Possession
The Central Board of Direct Taxes (CBDT) has set guidelines to ensure that gold jewelry up to a certain amount is not confiscated during income tax raids. Here are the limits:
Married Women: Up to 500 grams of gold jewelry
Unmarried Women: Up to 250 grams of gold jewelry
Men (Married or Unmarried): Up to 100 grams of gold jewelry
These limits are per individual, which means that in a family with multiple members, the total allowable gold increases accordingly.
For instance, if there are two married women in a household, the total permissible gold would be 1 kilogram.
Historical Context and Current Regulations
Previously, the Gold Control Act of 1968 restricted the amount of gold individuals could possess.
This act was repealed in June 1990, and since then, there has been no law explicitly limiting the amount of gold a person or family can hold.
The current guidelines issued by the CBDT in 1994 are intended to prevent undue confiscation of gold during tax raids, recognizing the cultural significance of gold in Indian households.
Summary of the CBDT Guidelines
Married Women: Can keep up to 500 grams of gold jewelry.
Unmarried Women: Can keep up to 250 grams of gold jewelry.
Men: Can keep up to 100 grams of gold jewelry.
These guidelines help ensure that traditional gold holdings are not unnecessarily targeted during tax enforcement actions.
