Everyone keeps gold at home. But now the government has fixed the limit for keeping gold in the house. In such a situation, if gold more than the limit is found in your house, you may have to pay a heavy fine and Income Tax can also take action. Let us know in detail in the news below-
Gold is evergreen, so everyone wants to keep it with them. In the form of jewellery, coins or biscuits. Now the trend of digital gold and gold bonds is also increasing. People in India like to keep gold in their homes. But do you know how much gold you can keep at home, because the government has set a limit on this too and there are different tax rules regarding keeping gold at home.
The government has made some rules regarding the amount of gold or gold jewelery that can be kept in the house (Gold limit in India as per income tax rules) which is important for everyone to follow. But most people do not know that there is a prescribed amount of gold to be kept at home. So let us tell you.
Experts say that while buying gold or its jewellery, always keep in mind that its bill has to be taken and that bill should always be kept safely. A circular of the Central Board of Direct Taxes says that there is no limit on keeping gold jewellery, but you will have to disclose its source. Because if there is any tampering or discrepancy in the proof, your gold can be confiscated.
CBDT rules regarding gold
CBDT has some rules regarding who can keep how much gold in the country. According to this, you can keep gold above this limit also, but you should have the answer as to where you have got this gold from. The rules also say that officers cannot confiscate gold ornaments or jewelery found in a house during a search operation, provided their quantity is below the prescribed limit, or the source is genuine.
Who can keep how much gold?
- 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.
Tax rules regarding gold
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 your household expenses or if you have inherited gold, then you will not have to pay tax on it either.
However, the source of gold should also be known. 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 you fall in as a taxpayer.
