Limit for keeping gold: If you keep gold at home then this news is useful for you. For your information, let us tell you that there is a fixed limit for keeping gold at home. If more gold than the limit is found at home, then income tax can be confiscated. Let us know in the news below how much gold can be kept at home.
Indians’ love for gold is unlikely to end like this. In India, gold is not just an expensive metal, it is a sentiment. It is deeply ingrained in our tradition. The most reliable investment of Indian household is gold. Every family wants to invest something in gold.
But do you know that there is a limit on how much gold you can keep at home and there are different tax rules regarding keeping gold at home? If you don’t know then definitely know. This is important to protect your investment. Caution should always be taken in such cases. If there is any tampering or discrepancy in the proof, your gold can be confiscated.
Who can store how much gold?
CBDT (Central Board of Direct Taxes) has some rules regarding who can keep how much gold in the country. According to this,
- A married woman can keep up to 500 grams of gold with herself.
- An unmarried woman can keep up to 250 grams of gold with herself.
- A man can keep up to 100 grams of gold with him.
However, you can keep gold above this limit also, but you should have the answer as to where you have got this gold from.
What is the rule of tax on gold?
For example, if you have bought gold from your income which you have disclosed, or you have bought gold from the money earned from farming, then there will be no tax on it. Apart from this, if you have bought gold by saving from household expenses or you have inherited gold, then you will not have to pay tax on it also.
Yes, it is important to know where the inherited gold came from. That is, if you know the overall information about where your gold has come from and with what income it has been purchased, then you are safe regarding gold storage.
Tax has to be paid on selling
There is no tax on keeping gold, but you have to pay tax on selling the kept gold. If you sell gold after keeping it for three years, then you will have to pay long term capital gains tax at the rate of 20% on the income from this sale.
If you sell gold within three years of buying it, the income from it will be added to your total income, and it will be taxed as per the tax slab in which you fall as a taxpayer.
If instead of physical gold, we talk about Sovereign Gold Bond, then the same rule will apply to it also. The income you earn from its sale will be taxed as per your taxable bracket. On this, 20% LTCG (Long Term Capital Gain Tax) will be applicable after indexation and 10% LTCG without indexation.
If you keep the bond till maturity, then you will not have to pay any tax on its interest rate.
In which situation there will be confiscation and in which situation it will not be
If gold is kept at home within the limits mentioned above, it cannot be confiscated in case of investigation. But this rule will apply only to gold kept in the name of family members. If someone else’s gold is kept in the family, it can be confiscated. Your gold is safe as long as you can prove the source of income.
