Gold Rules: There are certain guidelines for storing gold at home. Is there a limit on this? Keeping so much gold can cause you problems. Learn about these important facts.
Gold Rules: In India, gold is considered not just a piece of jewellery but also a part of tradition and investment. Buying gold is a tradition for every occasion, from weddings to festivals. People generally consider gold a safe deposit box and a strong security for the future. However, few people understand the proper amount of gold that can be stored at home.
Has the Income Tax Department established rules for this? Is there a limit set for this? What action can be taken if you possess more gold than the limit? If you invest in gold or keep gold at home, it's important for you to know what rules the government has established for this purpose. And what are the limits on gold possession? Learn the rules.
Is there a limit on keeping gold at home?The Income Tax Department has set limits on gold holdings. Married women can possess up to 500 grams of gold. Unmarried women can possess up to 250 grams, and men can possess up to 100 grams. Up to this limit, there's no tax or legal action. If you possess more than this amount, you'll be fined.
And if you provide proper bills or a declaration on your income tax return, there are no restrictions. This limit applies only to gold that doesn't have accompanying documents. If you have proof of your gold, you can hold a larger quantity without any problems.
When can there be a problem?Could keeping excess gold at home cause you trouble? If you have more gold than the prescribed limit, but you can't prove its proper invoices or legal source, the Income Tax Department can take action. Sometimes, excess gold is confiscated during raids. Similarly, if the assets declared in your income tax return and the gold found at home don't match, you can also take action.
Even then, an investigation could be initiated. Therefore, it's always important to obtain an authentic bill when purchasing gold. If you're investing a large amount, it's wise to include it in your ITR. This will avoid any legal trouble and prevent any problems when selling or pledging your gold in the future.
