A precious metal like gold sees its value rise over time. In India, purchasing gold during festivals is believed to be lucky. Many want to keep gold in their homes, whether jewelry or coins. But how much gold can you store at home?
In addition to ensuring its safety after keeping gold at home, it's crucial to understand the rules for keeping gold at home. The government has set specific rules that you must consider regarding the quantity of gold or gold ornaments you are allowed to have in your home. However, most individuals need to be aware that a fixed amount of gold is kept in the house.
What are the rules?
The Central Board of Direct Taxes (CBDT) states that no tax will be payable if someone buys gold with money that has been properly disclosed, exempted, or saved. In addition, gold that has been legally inherited and whose sources are known won't be subject to taxes either.
Additionally, according to the guidelines, if gold jewelry or ornaments are found at home during a search operation, and their number is below the established threshold, police are not allowed to seize them.
How much gold can you hold?
According to Mumbai-based income tax specialist Anupam Agarwal, there are no storage restrictions for gold as long as it was purchased with clear sources of income. According to the laws, a married lady can keep up to 500 grams of gold. A single woman has storage space for 250 grams of gold. 100 grams is the upper limit for male members.
Is there a tax on holding gold?
While owning gold is tax-free, selling it is subject to taxation.
What are the rules for selling gold?
The profits from the sale of the gold, if held for longer than three years, will be liable to long-term capital gains tax (LTCG). However, if you sell the gold within three years of buying it, the profit is added to your income and taxed according to the tax slab that applies to you.
What are the rules for the sale of Sovereign Gold Bonds?
When you sell a Sovereign Gold Bond (SGB), the profit is added to your income and then taxed by the tax slab you have selected. After three years of ownership, if the SGB is sold, the profit will be taxed at 20% with indexation and 10% without indexation. If the bond matures, there won't be any taxes due on the gains.