Kolkata: Gold has always been valued for different reasons in India — as an index of status, cultural value, for its adorning attribute and as a store of immense value and hedge against inflation. There is also no limit on the gold you can possess. However, Though tndians have a special attachment to the yellow metal, one cannot hoard a lot of gold at home without going against the law. Let’s have a look.
Experts say that if you has more gold than the limit set by the government and you are unable to prove its acquisition through the legal route, you might be in trouble — income tax a notice can easily come your way or income tax officers might knock at your door. Therefore, it is important to know how much gold one can legally keep at home.
Purchase, storage rules in India
According to Central Board of Direct Taxes (CBDT) rules, a married woman can keep the maximum gold — 500 grams. It can be kept at home. The limit for unmarried women is just half of that amount — 250 grams. A male, whether married or unmarried, can keep only 100 grams of gold. Whatever the amount of gold one has, it is prudent to have the proof of how one has got it.
A very important point to note is that if an individual has purchased gold from official and declared income, or has inherited it, none can seize the gold within the above-mentioned limit. The same goes for any income that might be agricultural and is, therefore, not taxable in India. Also, there is not tax on the purchase other than GST, which is at 3%. No tax is to be paid for keeping gold at home. However, if one sells gold and makes a profit, one has to pay capital gains tax, if made any.
Capital gains taxes on sale of gold (also on silver)
In her budget presented in July 2024, Union finance minister Nirmala Sitharaman revamped capital gains tax, trying to bring uniformity on the taxation across various asset classes. It was said that for metallic gold, the holding period that brings in short-term capital gains taxes was being decreased to two years from the period of three years followed earlier. If one sells gold that has been held for more than two years, long-term capital gains will kick in. But if it is sold before the end of two years from the date of purchase, short term capital gains taxes will be applied.
Long term capital gains taxes stand at 12.50% without indexation benefits. Indexation bring down the capital gains by factoring in inflation and does not base the calculation on nominal price. On the other hand, capital gains made by selling within two years (short term capital gains) will be added to taxable income of the individual and taxed at the applicable slab rates. LTCG can also applied at 20% with indexation benefit.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, precious metals and crypto assets.)
There is no limit to the gold you can possess. But there is a limit to the amount of gold that different individuals can keep at home in India. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
