Apart from ensuring the security of your gold, one should also be aware about what the government rules say on storing the yellow metal at home.
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New Delhi: Be it festivals or any other occasions, gold is considered an evergreen investment in Indian homes and comes handy in any emergency situation. However, there is a limit to how much gold or jewellery one can store at home.
For long, India has been one of the largest importer of yellow metal. In 2022, India was ranked fourth with 31.25 tons of gold purchase, said World Gold Council report.
Apart from ensuring the security of your gold, one should also be aware about what the government rules say on storing the yellow metal at home.
Gold quantity for married and unmarried woman
A married woman is allowed to keep at least 500gm of gold with her. For the unmarried woman, the prescribed quantity is 250gm, said a report by Kotak Life.
Gold quantity for male
In case of a male member of a family, a man is allowed to keep 100gm of gold or jewellery.
No seizure of gold under prescribed limit
According to government rules, authorities can not seize ornaments or gold during raid or search operation if the gold quantity is under the prescribed limit.
What Central Board of Direct Taxes (CBDT) say on gold storage at home
The CBDT rules say that if the gold or jewellery is purchased with disclosed source of income like agriculture, household saving or legally inherited, then that gold won't be subject to any tax.
The rules further sates that there is no limit on keeping the gold or jewellery as long as they are bought using known sources of income.
When you need to pay tax on gold?
If you decide to sell your gold in less then three years of purchasing it, then that is subjected to a short term capital gains tax at income tax slab rates. If the gold is sold more than three years after purchase, then that sale would attract long-term capital gains tax.
The capital gains will be taxed at 20 per cent indexation benefit (indexation benefit is used to adjust the rate of gold purchase after inflation) plus 4 per cent cess.
