Gold : Gold holds a special place in India. Whether it’s for weddings or festivals, gold always plays an important role. But did you know that there are legal limits on how much gold you can store at home? Yes, the Indian Income Tax Department has set rules regarding the amount of gold you can keep at home. Let’s take a look at the gold storage limits.
What Is the Limit for Storing Gold at Home?
You’ve likely seen many people storing large amounts of gold at home. However, it’s important to know that there is a limit to how much gold you can legally store. According to the Central Board of Direct Taxes (CBDT), a married woman can store up to 500 grams of gold, while an unmarried woman can store up to 250 grams. As for men, whether married or unmarried, they can store a maximum of 100 grams. This limit applies to gold that is kept without any receipts. If you have receipts for the gold you’ve purchased, it’s okay to exceed the limit.
What Happens If You Have More Than the Limit?
If you don’t have receipts and are found to have more than the allowed gold, there’s no need to worry. If the gold was bought with declared income or inherited legally, you don’t need to be concerned. You will just need to provide proof, such as receipts or legal documents. If you have proof, the Income Tax Department will not seize the gold. However, if there’s no proof, the gold may be seized.
Is There a Tax on Inherited Gold?
Many people wonder if inherited gold is taxed, but the answer is no. If you inherit gold and it’s part of your non-taxable income, you won’t have to pay tax on it. You just need to prove that the gold was inherited legally.
Tax on Selling Gold
If you’re planning to sell gold, it’s important to understand the tax rules. If you’ve kept gold for more than 3 years and sell it, you will have to pay a 20% long-term capital gains tax. However, if you sell it before 3 years, the profit you make from the sale will be added to your income, and the tax will be charged according to your applicable tax slab.
Tax Rules for Sovereign Gold Bonds
Nowadays, many people prefer to invest in Sovereign Gold Bonds, which have slightly different tax rules. If you sell the bond before 3 years, the profit will be added to your income and taxed according to your tax slab. If you sell the bond after 3 years, you’ll be taxed at 20% with indexation or 10% without indexation. However, if you hold the bond till maturity, you won’t have to pay any tax.
Conclusion
If you store gold at home, it’s important to keep the receipts or legal documents as proof. This way, you can avoid any legal complications in the future. Buying gold in the right way and keeping it with the proper documentation is essential for your financial safety.
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