Gold Storage Rule In India: The love for gold and silver in India is not hidden from anyone. On any auspicious occasion, people buy gold. Be it a wedding, marriage or any function at home, the most money is spent on buying gold.
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.
