In India, people, particularly women, are obsessed with gold, making it one of the most popular assets to own. Nearly every family possesses some amount of gold, whether in the form of jewellery, coins, or modern investment plans. This obsession with gold stems from its status as a symbol of good fortune and wealth in the country.
But do you know that there are specific limits on how much gold one can keep at home? You must understand these regulations to ensure compliance.
Gold Purchase, Storage And Tax Rules In India: The government has established rules regarding the purchase and storage of gold in India. According to these regulations, a married woman is allowed to keep up to 500 grams of gold at home.
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According to the Central Board of Direct Taxes (CBDT), you can keep specified amount of gold in the house. So whatever amount of gold you have, you must have the proof of how you got it.
The income tax laws say that a married woman can keep 500 grams of gold with herself. While the limit of gold an unmarried women is kept at 250 grams. Men of the family are allowed to keep only 100 grams of gold.
If you have purchased gold from declared income or tax-exempt income (such as agriculture) or have legally inherited it, there will be no tax on it. If a raid is conducted, the authorities cannot seize the gold jewellery found within the prescribed limit.
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While there is no tax to be paid on keeping gold at home, if selling gold, one must pay tax on it.
If you sell gold after holding it for 3 years, the profit made will be subject to Long-Term Capital Gains (LTCG) tax. Its rate is 20 percent.
If Sovereign Gold Bonds (SGB) are sold within 3 years, then the profit is added to the seller’s income and income tax is imposed as per the tax slab. If 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 profits.
2024-07-06T10:43:26Z dg43tfdfdgfd