Gold Storage Limit: Buying gold is considered very auspicious. Apart from this, it is also a very good option for investment. Many people also buy gold in advance for their children’s marriage. Let us know in this article how much gold we can keep at home in physical form. If we have purchased digital gold, what are the tax rules regarding it?
Gold Storage Limit: People start buying gold in advance and keeping it at home for their children’s marriage. In such a situation, many people do not know that if they keep more than a limit of gold in the house then they have to give account of it.
Investing in gold is a very good option but it is very important to keep it within the prescribed limit at home. If we keep more gold than the limit (Gold Store Rule in India), then we will have to give account to the Income Department.
To avoid legal action, it is important to know the exact amount of gold to keep. Today we will tell you how much gold you can keep at home.
As per the rules of the Central Board of Direct Taxes (CBDT), no tax is levied on the sources of revenue (agricultural income, inherited money, purchase of gold up to the limit) to get income and exemptions. If the gold in the house is under the prescribed limit, then the Income Tax official cannot take gold jewelery from the house during the search (Gold Jewelery Storage Rule).
how much gold can you keep
- An unmarried woman can keep up to 250 grams of gold at home.
- An unmarried man can keep only 100 grams of gold.
- At the same time, a married woman can keep up to 500 grams of gold at home.
- The limit for keeping gold at home for a married man is 100 grams.
Provision of tax on gold
Now we can buy digital gold along with physical gold. In such a situation, let us know what is the limit for keeping gold and what are the tax rules regarding it.
What are the tax rules regarding physical gold?
According to the CBDT circular, unmarried men or married men can hold only 100 grams of physical gold. Whereas an unmarried woman can keep 250 grams of gold and a married woman can keep 500 grams of gold in physical form (Gold Storage at Home).
If gold is sold within 3 years of purchasing it, the government imposes Short-Term Capital Gain Tax on it. At the same time, on selling gold after 3 years, Long-Term Capital Gain Tax has to be paid.
What are the tax rules regarding digital gold?
Digital gold gives higher returns as compared to physical gold. Apart from this, there is no limit on purchasing digital gold. If investors wish, they can buy digital gold up to Rs 2 lakh in a day. Short-term capital gains tax is not levied on digital gold, while long-term capital gains tax has to be paid at the rate of 20 percent.
Currently many people invest in Sovereign Gold Bond (SGB). This is a gold investment scheme. In this, a maximum of 4 kilograms of gold can be invested in a year. In this, interest rate of 2.5 percent per year is available. The interest received in this is taxed. At the same time, SGB becomes tax free after 8 years. There is no GST to be paid in SGB.
Long-term capital gains tax is levied on mutual funds and gold ETFs held for more than 3 years.
