How much gold is allowed to be kept at home? How much tax is levied on selling it? Understand the rules of the Income Tax Department

Gold Purchase, Storage and Tax Rules in India:People in India are very attracted towards gold jewellery. Especially women have a special attachment towards gold jewellery. Gold is one of the most desired assets. People here keep gold as an asset. Almost every family has some amount of it, whether it is in the form of jewellery or biscuits-coins or gold paper. In our country, gold is considered a symbol of prosperity and good fortune, so people have a special attachment towards it. But do you know how much gold is allowed to be kept at home? How much tax is levied on selling it? How much gold can married women keep with them? How much gold can a single man keep with him? If all such questions come to your mind sometimes, then you can know about the rules related to gold here.

How much gold can you keep

The Indian government has made rules for the purchase and storage of gold. According to these rules, a married woman is allowed to keep up to 500 grams of gold. There is no tax on this amount of gold with a married woman. An unmarried woman in a family is allowed to keep 250 grams of gold or gold jewellery. If there are men in the family, they are allowed to keep 100 grams of gold or gold jewellery.

How much gold can you keep at home

According to the Central Board of Direct Taxes (CBDT), you can keep as much gold as you want at home but you will have to provide proof of it if the tax department asks for it. You should have proof of how you raised funds to buy precious jewellery or what was the source of the funds so that whenever the tax department asks for proof, you can present it in front of them.

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Will there be tax on inherited gold?

If you have bought gold from declared income or tax-free income (such as agriculture) or have legally inherited it, then there will be no tax on it. Keep in mind that if the tax department ever raids your house, then the officers cannot confiscate the gold jewellery found within the limit set by the government.

Will there be tax on keeping gold at home?

There is no tax to be paid for keeping gold at home, but if you are selling gold then you will have to pay tax on it.

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How much tax will be levied on selling gold after 3 years?

If gold is sold after keeping it at home for 3 years i.e. 36 months, then it is considered a long-term capital gain (LTCG) and such assets come under the purview of tax. According to the rule, 20 percent tax along with surcharge will have to be paid on such assets, along with 4 percent cess will also be levied along with the benefit of indexation.

How much tax will be levied on selling gold bonds?

If you hold gold in the form of Sovereign Gold Bonds (SGB), then the profit made on selling such assets in less than 3 years and the seller’s income are added and then taxed based on the income tax bracket. If the Sovereign Gold Bond is sold after 3 years, the profit is taxed at the rate of 20% indexation and 10% without indexation. If the bond is held till maturity, there is no tax on the profit.