Gold Limit at Home Without Proof: Tax Rules You Must Know

Gold Limit at Home: In India, gold is more than just jewelry. It stands for tradition, culture and financial security. With gold prices nearing ₹1 lakh per 10 grams, people are not only buying gold but also selling it for profit. Many want to know if selling gold means paying tax. Others wonder how much gold can be kept at home without proof or tax issues.

Gold Limit at Home:

According to Indian tax rules, you can keep any amount of gold at home. But if tax officers question you, you must show proof of how you got it. Bills, receipts and bank statements are useful. If gold is above set limits and proof is missing, the income tax department can seize it.

Gold Limits Without Proof

The Central Board of Direct Taxes (CBDT) has set limits:
– A married woman can keep up to 500 grams of gold
– An unmarried woman can hold 250 grams
– A man can store 100 grams

No documents are needed within these limits.

Tax Rules When Selling Gold

Selling gold within three years of buying it is considered a short term gain. This profit is added to your total income and taxed as per your tax slab.

If sold after three years, it becomes a long-term capital gain. A 20% capital gains tax applies. Indexation benefit is available to reduce tax.

Tax on Gold Bonds and Gifts

Gold bonds also attract tax. If you earn profit through redemption or interest 10% to 20% tax applies depending on the scheme.

Gold received as a gift from parents or children is tax free. But if the value is over ₹50,000 and from others, the value is added to your income. Tax is applied based on your slab.

Why Proof of Gold Purchase Matters

Proof is key. Keep records of all gold purchases. Show where the money came from. Store purchase receipts safely. Without proof, you may face legal trouble or gold seizure.

Also Read: GPS-Based Toll Collection Starts May 1