Income Tax: Before keeping gold jewelery or things made of gold in the house, we ensure their safety, but do you know that it is also important to be aware of government rules related to this.
Gold is a precious metal whose value keeps on increasing over time. It is considered auspicious to buy gold during festivals in India. From jewelry to coins, many people like to keep gold in their homes. But do you know how much gold you can keep at home?
After keeping gold in the house, apart from its safety, it is also very important to know what are the rules of keeping gold in the house. For the amount of gold or gold ornaments you can keep in the house, the government has made some rules which are necessary to follow. But most of the people do not even know that there is a fixed amount of gold kept in the house.
What are the rules
According to the Central Board of Direct Taxes (CBDT), no tax will be payable if a person has purchased gold from disclosed or exempted income or has purchased gold from household savings made through appropriate means. Legally inherited gold, whose sources are known, will also not attract any tax.
The rules also state that the authorities cannot seize gold jewelery or ornaments found at home during a search operation, provided their quantity is less than the prescribed limit.
How much gold can you hold
Anupam Agarwal, an income tax expert and independent service provider in Mumbai, points out that as long as gold has been bought from clear sources of income, there is no limit to its storage. If we talk about the rules, then a married woman can keep up to 500 grams of gold. An unmarried woman can store 250 grams of gold. For male members, the limit is 100 grams.
Is there tax on holding gold?
There is no tax on holding gold, but you have to pay tax when you sell it.
What are the rules of sale
If you sell the gold after holding it for more than three years, the proceeds from the sale will be subject to Long Term Capital Gains Tax (LTCG). On the other hand, if you sell the gold within three years of purchase, the profit is added to the individual’s income and taxed as per the applicable tax slab.
Rules for the sale of Sovereign Gold Bonds
In case of selling Sovereign Gold Bond (SGB), the profit will be added to your income and then taxed as per the tax slab chosen. If the SGB is sold after three years of holding, the profit will be taxed at the rate of 20 per cent with indexation and 10 per cent without indexation. No tax will be levied on the gains if the bond reaches its maturity.
(This article is based on general information. Get expert opinion for more details.)
