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.

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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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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