Gold Storage Limit In India: Indians love gold a lot . People often like to give gold as a gift in weddings, while many people invest in gold. If we talk about women, they also like to wear gold jewellery.
People start buying gold in advance for their children’s wedding and keep it at home. In such a situation, many people do not know that if they keep more than a limit of gold at home, then they have to give an account of it.
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Investing in gold is a very good option but it is very important to keep it within the prescribed limit at home. If we keep more gold than the limit (Gold Store Rule in India), then we will have to give an account of it to the Income Department.
To avoid legal action, it is important to know the exact amount of gold we can keep. Today we will tell you how much gold you can keep at home (How Much Gold You Can Keep At Home).
According to the rules of the Central Board of Direct Taxes (CBDT), no tax is levied on the sources of revenue (agricultural income, inherited money, purchase of gold up to the limit) for getting income and exemption. If the gold in the house is under the prescribed limit, then the Income Tax official cannot take away the gold jewellery (Gold Jewellery Storage Rule) from the house during the search.
How much gold can you keep
- An unmarried woman can keep up to 250 grams of gold at home.
- An unmarried man can keep only 100 grams of gold.
- At the same time, a married woman can keep up to 500 grams of gold at home.
- The limit for keeping gold at home for a married man/male is 100 grams.
Provision of tax on gold
Now we can buy digital gold along with physical gold. In such a situation, let us know what is the limit for keeping gold and what are the tax rules regarding it.
What are the tax rules regarding physical gold
According to the CBDT circular, an unmarried man or a married man can keep only 100 grams of physical gold. Whereas an unmarried woman can keep 250 grams and a married woman can keep 500 grams of gold in physical form (Gold Storage at Home).
If gold is sold within 3 years of purchase, then the government imposes Short-Term Capital Gain Tax on it. On the other hand, if gold is sold after 3 years, then Long-Term Capital Gain Tax has to be paid.
What are the tax rules regarding digital gold
Digital gold gives higher returns than physical gold. Apart from this, there is no limit on buying digital gold. If investors want, they can buy digital gold up to Rs 2 lakh in a day. There is no short-term capital gain tax on digital gold, while long-term capital gain tax has to be paid at the rate of 20 percent.
At present, many people invest in Sovereign Gold Bond (SGB). This is a gold investment scheme. In this, a maximum of 4 kg of gold can be invested in a year. It gives an interest rate of 2.5 percent per annum. The interest received in this is taxable. On the other hand, SGB is tax free after 8 years. GST is not payable on SGB.
Mutual funds and gold ETFs are subject to long-term capital gains tax if they are held for more than 3 years.
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