Gold is the biggest asset that a person could keep in emergencies while fulfilling financial needs through gold loans. Many people in the country keep this precious metal at home and some people keep it in bank lockers. But they do not know how much gold can be kept at home. Recently, the central board of direct taxes has launched an update in which they have told how much gold can be kept at home.
CBDT released update
Recently, Central Board of Direct Taxes released an update that says how much gold you can keep in your home. On the other hand, if you keep more than that, it can create problems for you. There is a huge tax you need to pay. According to the rules of the government, a married woman in India can have 500 grams of gold with her.
At the same time, an unmarried girl has the limit of 250 grams. If you have more than that gold, you should expect an income tax notice. According to the income tax rules, 100 grams of gold is allowed to be retained by a person. No matter whether that person is a male or a female, married or unmarried.
There will be problems if you keep more gold than the limit
Over the limit of original possession of gold; so, the more you have or the more gold that you inherited will mean the more tax you have to pay on it. If you do not need to pay tax for having been inherited gold as well, else you will pay tax on it once sold. Also in this case, you must provide a legal will or other proof. Once it is not believable, it will then come under the heading of penalty.
Legal clauses on limit of gold –
As of now, legislation does not impose an upper limit on a person keeping gold in his home in India. Endow with whatever jewellery you want in your house. Coins or bars can be stored here. But if you do not pay the prescribed tax on it or keep gold without giving proof of income, then it can create problems for you.
You can save gold from proper sources-
As per the Central Board of Direct Taxes, there is no interest payable on the gold if it is agricultural, domestic savings, or legally inherited, and finds itself in the home. As long as the gold or jewels are purchased with legitimate sources of income, there is no restriction on keeping them.
This much tax has to be paid on gold-
If you buy gold and decide to sell it within three years of purchase, then you will have to pay tax on it according to the income tax slab rates. If it is thought of selling gold after more than three years of buying it, then tax will be levied on that sale according to the profit received in the long term. On capital gains, 20 percent indexation will be taken on it, while 4 percent cess will be levied.
