Storing Gold At Home? Details On Limit, Taxes And Rules

Gold is one precious metal whose value has only risen with time. In India, buying gold during festivals is believed to be auspicious. From jewellery to coins, many of us prefer to keep gold in our homes. .With a metal of such high value, besides ensuring that gold is kept safely, it is crucial to look at the government rules related to it. .According to the Central Board of Direct Taxes (CBDT), if an individual has purchased gold with disclosed income or exempted income like agricultural income “or out of reasonable household savings or legally inherited which has been acquired out of explained sources”, then it will not be subject to tax. .The rules also state that during search operations, officials cannot seize gold jewellery or ornaments from a house provided the quantity is under the prescribed limit. .A married woman can hold up to 500 grams of gold, an unmarried woman can store 250 grams of gold and the limit for male members of the family is 100 grams. .“Further, legitimate holding of jewellery up to any extent is fully protected,” the rules read. It means that there is no limit on storing gold as long as it has been bought through explained sources of income. .Now, it must be noted that while keeping gold may not attract taxes, the same is not applicable when you decide to sell it. .If you choose to sell gold after holding it for more than three years, then the income arising from the sale will be subject to Long-term Capital Gains Tax (LTCG), which is 20 percent with an indexation benefit. .On the other hand, if you sell the gold within three years of purchasing it, then the gain is added to the income of the individual and taxed as per the applicable tax slab. .In the case of selling Sovereign Gold Bonds (SGB), the gains will be added to your income and then taxed as per chosen tax slab. .When SGBs are sold after three years of holding them, then the gains will be taxed at the rate of 20 percent with indexation and 10 percent without indexation. .Notably, no tax will be levied on the gains if the bond is held till maturity.

Storing Gold At Home? Details On Limit, Taxes And Rules

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