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Gold storage limit in India: Indians love gold. People often like to give gold as a wedding gift, while many people invest in gold. If we talk about women, they also like to wear gold jewellery.
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 at home then they will have to give account of it.
Investing in gold is a very good option, but it is very important to keep it at home within the prescribed limit. If you keep more gold than the prescribed limit (Gold Store Rule in India), then we will have to give its account to the Income Department.
To avoid legal action, it is important for us to know the exact quantity of gold. Today we will tell you how much gold you can keep at home.
As per Central Board of Direct Taxes (CBDT) rules, there is no tax on income and sources of income (agricultural income, inherited money, purchase of gold up to certain limits) eligible for exemption. If the gold in the house is less than the prescribed limit, then the Income Tax officials cannot take gold jewelery from the house during the search (Gold Jewelery Storage Rule).
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 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. At the same time, an unmarried woman can keep 250 grams of gold and a married woman can keep 500 grams of gold in physical form.
If gold is sold within 3 years of purchase, the government imposes short term capital gains tax on it. At the same time, long term capital gains tax has to be paid on selling gold after 3 years.
What are the tax rules regarding digital gold?
Digital gold gives higher returns than physical gold. Apart from this, there is no limit for purchasing digital gold. If investors wish, they can buy digital gold up to Rs 2 lakh in a day. There is no short term capital gains tax on digital gold, while long term capital gains 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. A maximum of 4 kg gold can be invested in this in a year. Interest is available on this at the rate of 2.5 percent per annum. The interest received in this is taxable. At the same time, SGB becomes tax free after 8 years. No GST has to be paid on SGB.
If mutual funds and gold ETFs are held for more than 3 years, then long term capital gains tax is levied on them.