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.

The post Gold Storage Limit : How much gold can you keep at home? Limits and income tax rules explained first appeared on Rightsofemployees.com.

Gold Storage Limit In India: Indians like gold very much. People often like to give gold as a gift during marriage, while many people invest in gold. If we talk about women, they also like to wear gold jewellery.

People start buying gold in advance and keeping it at home for their children’s marriage. In such a situation, many people do not know that if they keep more than a limit of gold in the house then they have to give 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 account to the Income Department.

To avoid legal action it is important to know the exact amount of gold to keep. Today we will tell you how much gold you can keep at home.

As per 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) to get income and exemptions. If the gold in the house is under the prescribed limit, then the Income Tax official cannot take gold jewelery from the house during the search (Gold Jewelery Storage Rule).

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 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, unmarried men or married men can hold only 100 grams of physical gold. Whereas an unmarried woman can keep 250 grams of gold 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 purchasing it, the government imposes Short-Term Capital Gain Tax on it. At the same time, on selling gold after 3 years, Long-Term Capital Gain Tax has to be paid.

What are the tax rules regarding digital gold?

Digital gold gives higher returns as compared to physical gold. Apart from this, there is no limit on purchasing digital gold. If investors wish, they can buy digital gold up to Rs 2 lakh in a day. Short-term capital gains tax is not levied on digital gold, while long-term capital gains tax has to be paid at the rate of 20 percent.

Currently many people invest in Sovereign Gold Bond (SGB). This is a gold investment scheme. In this, a maximum of 4 kilograms of gold can be invested in a year. In this, interest rate of 2.5 percent per year is available. The interest received in this is taxed. At the same time, SGB becomes tax free after 8 years. There is no GST to be paid in SGB.

Long-term capital gains tax is levied on mutual funds and gold ETFs held for more than 3 years.

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The post Gold Storage Limit In India: How much gold you can keep at home without fearing Income Tax raid? first appeared on Rightsofemployees.com.