How much gold can you keep at home? Check limits, govt rules here
Wed May 29 2024
Gold prices in India have seen significant growth in the last few months. The yellow metal is currently priced at over Rs 70000 per 10gm in the Indian market. People often buy gold during the festive season and weddings. People mostly like to keep their gold, including jewellery, at home and avoid lockers. Hence, it's important to be aware of government rules related to gold.
According to government rules, one can keep as much gold jewellery at home as he/she wants. However, one has to explain where the money came from if asked by the tax authorities. You won't have to pay taxes on gold purchases made with declared income, money earned from agricultural activities, legally inherited money, and a reasonable amount of savings, according to the Central Board of Direct Taxes (CBDT).
However, there are limits on the amount of gold jewellery that can be kept at home without showing any proof for tax purposes. Under this, a married woman can have up to 500 grams of gold, an unmarried woman can have 250 grams of gold and men can have only 100 grams of gold.
The gold is taxed when it is sold or exchanged for jewellery with a different design. The taxation depends on the duration you have held the gold jewellery or coins. There are types of gains when selling the yellow metal -- short-term and long-term capital gains. Short-term capital gains will be considered if the time between buying and selling is less than three years (36 months). If it's more than that, the capital gains will be considered long-term and taxed at 20% along with any applicable surcharge, plus a cess at 4% with the benefit of indexation.
Source: https://www.dnaindia.com