If you have kept gold at home, then definitely know its limit, because if you have more gold than a limit (Gold limit in India), the Income Tax Department can tighten the noose on you. It is very important to follow the rules of keeping gold at home by the Income Tax Department.

If you have kept gold at home beyond a fixed limit, then strict action can be taken against you by the department. After coming on the radar of the department, your problems will increase, so it is important to know these rules (income tax rules for gold) beforehand.

Keep a proper bill of gold with you-

Different rules of tax (tax on gold) have been made regarding keeping gold at home. These rules depend on the amount of gold kept at home. Gold is useful to humans even in difficult times, and that is why people keep it in their homes. Usually, gold is kept in homes in the form of jewelry, coins, and biscuits.

However, nowadays gold is also purchased through digital gold and gold bonds (gold bond schemes). While buying gold or jewelry, a proper bill should be taken. Keep this bill safe, because as per CBDT rules, if asked, you will have to tell the source of this gold. If the correct answer is not given, then the gold kept at your home can be confiscated. However, no limit has been fixed for keeping jewelry.

What do CBDT rules say -

According to the Central Board of Direct Taxes, if you keep more gold than a fixed limit, you will have to satisfy the department by giving a proper answer, otherwise, action can be taken. You can be asked where this gold came from, you should have a proper answer for this. On the other hand, the rule (gold collection rules at home) is also that during the search operation, the Income Tax officers cannot confiscate the gold jewellery found from the house. However, this quantity should be less than the prescribed limit and you should know its source.

Limit of keeping gold at home -

According to the Income Tax rules, a married woman can keep 500 grams of gold with her at home. For an unmarried woman, this rule is 250 grams of gold (the gold limit for women). Similarly, for a person, the rule is to keep up to 100 grams of gold.

It is necessary to give information about annual income-

Never hide your income, it is considered tax evasion. After showing income from farming and income in the income tax return, there is no tax on buying gold (tax on gold selling). Gold bought by savings from household expenses is also tax-free. There is no tax liability on inherited gold as well. But when asked by the department, you will have to tell the correct source of this gold. The tax has to be paid on the gold kept at home (tax rules for gold).

Tax liability on selling gold-

If you keep gold at home for three years and then sell it, then you will have to pay a 20 percent tax on the profit. This profit is considered as Long Term Capital Gain on gold. If you sell gold before three years, then the income from it will be added to your total income of the year and you will have to pay tax (gold par tax ke rules) according to the tax slab. After this income, if you fall under the purview of tax-paying rules, then you will have to pay tax.

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