Gold Storage Rules: Gold has always been an important investment and tradition in India. Everyone is enthusiastic about buying gold. Now, the question arises: how much gold can one store at home? Let’s find out what the government rules are regarding this.
Gold Storage Limit at Home: Buying gold is considered auspicious in India. Most people prefer to buy gold for weddings or other auspicious occasions. Indian women also enjoy wearing gold jewelry. They often purchase gold in advance for their children’s weddings and store it at home. But the question often arises: how many kilograms of gold can be stored at home? Is there a legal limit? Income Tax Department rules state that there is no government limit on gold storage, but it is crucial to prove its source.
Gold is so popular in India that people accumulate it from generation to generation. Let us explain the rules for storing gold at home so that you can understand how much gold you can legally store at home to avoid income tax scrutiny.
Rules are different for everyone
In India, the rules for purchasing and storing gold are different for men, married women, and unmarried women. Married women are allowed to possess up to 500 grams of gold. Unmarried women can possess up to 250 grams, and men can possess up to 100 grams. These quantities are not confiscated under any circumstances. However, if you have purchase receipts or inheritance documents, you can legally keep more gold at home than these limits. This Income Tax Department limit applies only to undocumented gold. This means that no matter how much gold you possess, proof of ownership is required.
How much tax will you have to pay?
If you sell gold, you have to pay tax to the government on the income earned from it. According to the CBDT circular, if you buy gold and sell it within three years, you will have to pay short-term capital gains tax. Furthermore, if you sell gold after more than three years, you will have to pay long-term capital gains tax.
