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In India The tradition of buying gold is very old. People buy gold and keep it at home. In India, gold is not only seen as an investment but also as a tradition. Therefore, there is a custom of buying gold on any auspicious occasion. It is an adornment for women, while many people also see it as an asset that will come in handy in difficult times. Keeping safety in mind, many people keep gold in bank lockers.
But do you know how much gold can be kept at home and what will happen if you keep more gold than the prescribed limit? Will you have to pay tax on selling gold? Here we will tell you about this in detail. So let's know.
Limit on keeping gold at home (per capita gold limit in India)
Under the Income Tax rules of the Government of India, a limit has been set for keeping gold at home (Gold Storage Limit in India). According to this, this limit is different for women and men. According to the rules of CBDT (Central Board of Direct Taxes), you can keep only a certain amount of gold at home. If you keep more gold than this fixed limit at home, then you will have to provide proof of it. You should have receipts related to the purchase of gold etc.
How much gold can women keep?
According to the Income Tax Act, married women can keep 500 grams of gold with them. Whereas for unmarried women this limit has been kept at 250 grams. At the same time, men are allowed to keep only 100 grams of gold.
Is there any tax on inherited gold?
If you have bought gold from declared income or tax-free income or you have legally inherited gold, then you will not have to pay any tax on it. According to the rules, the government will not confiscate gold jewellery found within the prescribed limit, but if the gold is more than the prescribed limit, then you will have to show the receipt.
Do you have to pay tax on selling gold?
There is no tax on keeping gold at home (Tax on Gold Jewellery Holdings), but if you sell gold then you have to pay tax on it. If you sell gold after keeping it for 3 years, then Long Term Capital Gains (LTCG) tax is levied on the profit earned from it at the rate of 20 percent.
Tax will be levied on selling gold bonds
If you sell Sovereign Gold Bond (SGB) within 3 years, then the profit earned from it will be added to your income and then tax will be levied on it according to your tax slab. If Sovereign Gold Bond (SGB) is sold after 3 years, then the profit is taxed at 20 percent indexation and 10 percent without indexation. But if you keep the gold bond till maturity, then no tax is levied on the profit.
