A married woman can keep a maximum of 500 grams of gold at home. An unmarried woman can keep 250 grams of gold and a man can keep only 100 grams of gold. If you keep more than the prescribed quantity of gold, you will have to provide proof of income.
Akshaya Tritiya will be celebrated on 10th May. Buying gold on this day is considered auspicious. Gold is the safest medium of investment. For this reason, people across the country buy gold jewellery, coins or digital gold etc. as per their affordability. The tax liability on all these methods is different. Come, let us know how much tax is levied on buying gold in which format…
Rules on buying jewellery, coins
Purchase of gold jewellery, coins, gold biscuits etc. is taxed in the same way as digital gold. 20.8 percent tax has to be paid on selling gold after three years. If sold within three years, the profit will be added to your income and then tax will have to be paid. For example, you bought gold worth Rs 3 lakh, whose value becomes Rs 6 lakh after five years. If your profit in this is Rs 3 lakh then you will have to pay tax on this profit.
Tax laws for ETFs
The earnings from ETFs are taxable. This will apply whenever you sell it. There is no tax on this based on the period of sale. According to data from the Association of Mutual Funds (AFFI), till February 29, 2024, 17 gold ETF schemes have been issued, in which people have invested Rs 28,529 crore.
Tax liability on gold bonds
Different tax rules apply to the purchase of sovereign gold bonds. If you sell them in the share market within three years after their purchase, you will be taxed as per income tax section. If you sell after three years, you will have to pay 20 percent tax on the profit after the purchase price. If you keep it for the prescribed period then no tax will be levied.
Actually, the maturity period of Sovereign Gold Bond is eight years. There is also an option for premature maturity after five years. The annual income of 2.5 percent from these bonds is taxed as per the Income Tax Section.
Rules for keeping gold at home
The quantity of gold to be kept in the house is fixed by the Income Tax Department. If there is more quantity of gold than this, information has to be given in ITR. You have to tell how much gold you have. According to income tax rules, a married woman can keep a maximum of 500 grams of gold at home. An unmarried woman can keep 250 grams of gold and a man can keep only 100 grams of gold. If you keep more than the prescribed quantity of gold, you will have to provide proof of income. In case of not disclosing the source of income, you can also face jail.
