The adornment for women is an asset that comes in handy in difficult times. The transaction of gold has been happening from one generation to the other. Every family in India has some gold, be it jewelry, gold and silver coins. But do you know that there is a limit to keep gold at home? The government has set a rule for keeping gold at home. You may get into trouble if you cross the limit of keeping gold.

How much gold can one keep at home?

Under the Income Tax Act of the Government of India, a limit has been set for keeping gold at home. According to this limit, the limit is different for men and women. According to the Central Board of Direct Taxes (CBDT), you can keep a certain amount of gold at home. If you keep more gold than this fixed limit, then you will have to provide proof of it. You should have receipts related to the purchase of gold etc.

1. In India, a married woman can keep up to 500 grams of gold at home.
2. Unmarried women can keep up to 250 grams of gold at home.
3. Men are allowed to keep only 100 grams of gold.

Will there be tax on ancestral gold?

If you have bought gold from declared income or tax-free income or you have inherited gold legally, then you will not have to pay any tax on it. That is, gold jewellery found within the prescribed limit will not be confiscated by the government, but you will have to show receipt for gold outside the prescribed limit.

How much tax will have to be paid on selling gold?

If you sell the gold kept at home, then you have to pay tax on it. If you sell gold after keeping it for three years, then the profit from it is considered as Long Term Capital Gains (LTCG) and it will be taxed at the rate of 20 percent. Is there tax on inherited gold? On the other hand, if you sell the gold bond within 3 years, then the profit from it will be added to your income and your income tax will be taxed according to the income tax slab. If you sell it after three years, then the profit is taxed at 20 percent indexation and 10 percent without indexation. But if you keep the gold bond till maturity, then there is no tax on the profit.

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Gold Limit At Home: Gold is given great respect in Indian homes. Gold is a symbol of prosperity. Apart from jewellery, it is a good investment option. Nowadays a question is being discussed a lot that is there any limit for keeping gold at home? The simple answer to this is that no, the government has not imposed any limit on keeping gold at home. Recent questions have come to light regarding the incidents of raids conducted by the Income Tax Department.

During the raid, the Income Tax Department used to confiscate all the jewelery etc. found in the house and take it away. Many times the jewelery worn by women was also confiscated. There used to be a lot of problems regarding this and a situation of tension was created between the income tax payer and the tax department.

To solve this problem, the Central Board of Direct Taxes (CBDT) issued a circular. It was said in this circular that gold will not be seized up to a limit in any raid. According to tax and investment expert Balwant Jain, this limit is as follows – A married woman can have 500 grams of gold, an unmarried woman can have 250 grams of gold and a man can have 100 grams of gold. Even if you do not have documents containing that much gold during the raid, they cannot be confiscated. It is noteworthy that this is only about jewellery. There is no mention of gold biscuits and bricks in the CBDT circular.

Earlier there was a limit

Balwant Jain says that under the Gold Control Act 1968, a limit was imposed on keeping gold in the house but it was abolished in 1990. In 1994, CBDT issued a circular directing its officers not to seize gold jewelery up to the above mentioned limit. This was done to reduce the situation of tension between taxpayers and income tax officials. However, when the income tax payers are asked to appear before the department during the investigation, they will have to show the correct documents related to this much gold.

What about inherited gold?

If a person has inherited gold jewelery from grandparents or ancestors, then the same rule will apply. They will have to show his documents. They will have to provide proof that this jewelery belongs to their ancestors. If the documents are correct then they will not be confiscated. If it is not so, then the Income Tax Department officials can take that gold with them. You can get them released later with the correct documents.

Bank Holiday 13 May: There will be bank holiday this Monday in 96 cities of the country, check the list before going to the bank.

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