Gold limit in India: If you have more gold than the limit, then you should have its source and proof and if you tell its valid source then you will not have any problem. Let’s know about it in detail.
Buying gold is considered auspicious in India. As a safe investment option, gold can be held in the form of coins, bars, jewelry or paper or in gold exchange-traded funds (gold ETFs), sovereign gold bonds (SGBs) issued by the Reserve Bank of India and gold mutual funds (gold MFs). Can be bought through But do you know what is the maximum amount of gold that a person can keep in India? Up to what limit can gold be kept at home?
The Gold Control Act was established in the year 1968 in India. Due to this law, citizens have been banned from keeping more than a certain amount of gold. However, this act was abolished in 1990. Currently there is no restriction on the quantity of gold in India but the holder must have a valid source and documents related to gold.
Guidelines have been framed for the Income Tax authorities while confiscating property during an Income Tax Raid. According to these directions, jewelry or ornaments cannot be confiscated up to a certain limit depending on the gender and marital status of the person.
Married women can keep 500 grams of gold
According to this, a married woman can easily keep 500 grams of gold with her, while an unmarried woman has no problem with having up to 250 grams of gold.
Apart from this, a married man can have 100 grams of gold. In such a situation, if someone has gold up to this limit, then there is no need to give any income proof. Income source can be sought if it is more than this.
Gold tax rules
Taxation on gold investment depends on the period of holding it. If gold is held for more than three years, it is taxable as Long Term Capital Gain (LTCG) at 20 per cent and Short Term Capital Gain is taxable at the normal tax slab applicable to the investor. Gold ETFs/Gold MFs are also taxable like physical gold.
Whereas in the case of bonds, if they are held till maturity, they are tax-free. However, capital gains are payable on transactions in physical gold or ETFs or gold MFs. The bonds are traded on the exchanges in demat form. They can be redeemed after five years. Whereas, if the bond is sold before maturity, it is taxable at 20 per cent.
What are the documents required to keep gold
If there is more than the prescribed amount of gold in the house, it is necessary to have documents related to it. According to Section-132 of Income Tax 1961, if gold is found in excess of the prescribed standard, then the officials can check the documents related to it.
In such a situation, it is necessary to have the original bill and necessary documents from where the gold was bought. In case of excess, income source may also have to be mentioned. If gold has been received from the family, then it is necessary to show documents related to family settlement. If gold is received as a gift, then it is very important to have a gift deed attached to it.
