Gold Limits and Regulations, Gold holds a special place in Indian households, not just as a financial asset but also as a symbol of prosperity and good fortune. However, there are regulations governing the amount of gold one can possess at home. Here’s what you need to know about the gold limit in India:
Gold Limits and Regulations
Gold Limit Per Person:
According to the Central Board of Direct Taxes (CBDT), there are specific limits on the amount of gold individuals can keep at home. These limits vary based on marital status:
- Unmarried Woman: Allowed up to 250 grams of gold.
- Unmarried Man: Permitted to possess up to 100 grams of gold.
- Married Woman: Can keep up to 500 grams of gold.
- Married Man: Allowed to have up to 100 grams of gold.
No Seizure Below Prescribed Limit:
Gold Limits and Regulations, Importantly income tax authorities are prohibited from confiscating gold jewellery during search operations if the quantity is within the prescribed limits. This provides assurance to individuals regarding the security of their gold possessions.
Tax Guidelines on Gold Storage:
Gold or jewellery purchased using disclosed sources of income, such as agricultural earnings, household savings, or legal inheritance, is not subjected to taxation. There is no limit on the amount of gold one can possess as long as it is acquired through legitimate means.
Tax Implications:
- Short-term Capital Gains: Selling gold within three years of purchase incurs short-term capital gains tax at income tax slab rates.
- Long-term Capital Gains: Gold sold after three years attracts long-term capital gains tax, which is taxed at 20% with indexation benefit plus a 4% cess.
Understanding the regulations surrounding gold possession is essential for individuals to ensure compliance with the law and safeguard their assets. While gold remains a cherished investment in Indian culture, adhering to the prescribed limits and tax guidelines is crucial for financial prudence and security.