- Advertisement -
Home Personal Finance Gold Storage Rule: Income Tax Department can take action if you keep...

Gold Storage Rule: Income Tax Department can take action if you keep more gold than this limit at home

0
Gold Storage Rule: Income Tax Department can take action if you keep more gold than this limit at home

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 wedding. Let us know in this article how much gold we can keep at home in physical form. If we have bought digital gold, then what are the tax rules regarding it?

Gold Storage Limit In India: Indians like gold a lot. People often like to give gold as a gift in marriage, while many people invest in gold. If we talk about women, they also like to wear gold jewellery.

People buy gold in advance for their children’s wedding and start keeping it at home. In such a situation, many people do not know that if they keep more gold than a limit at home, then they have to give an account of it.

Investing in gold is a very good option, but it is very important to keep it at home under the fixed limit. If you keep more gold than the limit (Gold Store Rule in India), then we will have to give an account of it to the Income Department.

To avoid legal action, it is necessary for us to know the right amount of gold to keep. Today we will tell you how much gold you can keep at home (How Much Gold You Can Keep At Home).

According to 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) for getting income and exemption. If the gold in the house is under the prescribed limit, then the Income Tax official cannot take away the gold jewellery (Gold Jewellery Storage Rule) from the house during the search.

How much gold can be kept

  • An unmarried woman can keep up to 250 grams of gold at home.
  • An unmarried man can keep only 100 grams of gold.
  • On the other hand, 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 also buy digital gold along with physical gold. In such a situation, let us know what is the limit of keeping gold and what are the tax rules regarding this.

What is the tax rule regarding physical gold

According to the circular of CBDT, an unmarried man or married man can keep only 100 grams of physical gold. At the same time, an unmarried woman can keep 250 grams 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 purchase, then the government imposes Short-Term Capital Gain Tax on it. At the same time, Long-Term Capital Gain Tax has to be paid on selling gold after 3 years.

What is the tax rule regarding digital gold

Digital gold gives higher returns than physical gold. Apart from this, there is no limit on buying digital gold. If investors want, they can buy digital gold up to Rs 2 lakh in a day. Short-term capital gain tax is not levied on digital gold, while long-term capital gain tax has to be paid at the rate of 20 percent.

At present, many people invest in Sovereign Gold Bond (SGB). This is a gold investment scheme. In this, a maximum of 4 kg of gold can be invested in a year. It gives an interest rate of 2.5 percent per annum. The interest received in this is taxable. At the same time, SGB is tax free after 8 years. GST is not to be paid on SGB.

If mutual funds and gold ETFs are kept for more than 3 years, then long-term capital gain tax is levied on it.

- Advertisement -DISCLAIMER
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at informalnewz@gmail.com

Exit mobile version