- Income Tax monitors gold purchases; keep valid proof
- Indicative limits: 500g (married women), 250g (unmarried women), 100g (men)
- No tax on holding; capital gains apply on sale
New Delhi: The Income Tax Department keeps an eye on your gold purchases. If you keep more gold at home than the prescribed limits without valid documentation, you may receive a notice or face a search. Here are the key rules to help you stay compliant and avoid scrutiny.
Gold Storage Limits at Home
| Category | Permissible Gold (without proof) | With Valid Proof/Bills |
|---|---|---|
| Married women | Up to 500 grams | No upper cap if supported by bills/ITR/inheritance proof |
| Unmarried women | Up to 250 grams | No upper cap with valid documentation |
| Men | Up to 100 grams | No upper cap with valid documentation |
Documentation & Proof
- Keep purchase invoices for jewellery/coins/bars.
- Declare purchases in your Income Tax Return (ITR) where applicable.
- Maintain records for gifts or inheritance (gift deeds, wills, family declarations).
- Gold bought from declared or tax-exempt income (e.g., agricultural income) is acceptable with proof.
Is Holding Gold Taxable?
There is no tax merely for storing gold at home. However, selling gold can trigger taxes on gains:
- Short-term or long-term capital gains tax may apply depending on holding period and law in force.
- Keep sale invoices and compute gains as per applicable rules.
Note: These limits apply to undocumented gold. If you have valid bills or can establish the source (declared income, tax-exempt income, or inheritance), you can legally hold any amount, and jewellery should not be confiscated during a search solely on quantity grounds.
Advisory: Preserve all proofs for your gold holdings. In case of sale, compute and pay taxes on gains as applicable.
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