Gold Storage Rules in India: How Much Gold Can You Keep at Home?

Bengaluru :

The love for gold in India is well-known, with gold being a common purchase during weddings, festivals, and other auspicious occasions.

However, the government has set specific rules and limits on how much gold one can legally keep at home.

Exceeding these limits can lead to legal trouble unless proper documentation is provided.

Limits on Gold Possession

Under the Income Tax Act, the Central Board of Direct Taxes (CBDT) has specified different limits for men and women:

1. Married Women: Can keep up to 500 grams of gold.
2. Unmarried Women: Can keep up to 250 grams of gold.
3. Men: Can keep up to 100 grams of gold.

If you possess gold beyond these limits, you must have valid receipts and proof of purchase.

Taxation on Ancestral Gold

Gold inherited or acquired through declared or tax-free income is not subject to taxation.

However, you must provide receipts for any gold exceeding the specified limits to avoid confiscation by the government.

Tax Implications on Selling Gold

When you sell gold, the tax you owe depends on how long you have held the gold:

1. Long Term Capital Gains (LTCG): If you sell gold after holding it for more than three years, the profit is considered LTCG and is taxed at 20% with indexation.
2. Short Term Gains: If you sell gold within three years, the profit is added to your income and taxed according to your income tax slab.

Details about Gold Bonds, is below.

Gold Bonds

For Gold Bonds-

• Within 3 Years: Profits are added to your income and taxed as per your income tax slab.
• After 3 Years: Profits are taxed at 20% with indexation or 10% without indexation.

At Maturity: No tax on profits if the gold bond is held until maturity.