Legal Limits on Gold You Can Keep at Home Explained by Income Tax Rules

Gold is a safe haven asset which is widely owned in India as it finds its roots in tradition as well as the economic fabric of the country.

Not only is gold valued for its beauty and status but also for its role as a secure investment.

However, there is a limit to how much gold can be stored at homes legally.

Gold Storage Limit Per Person

While there is no specific limit for how much gold you can keep at home in India legally, if you can explain the source, there are limits to how much gold can be kept at home without knowing the source.

In the second case, married women can keep 500 grams of gold, unmarried women can keep 250 grams of gold and men, either  married or unmarried can keep 100 grams of gold, according to CBDT.

Income Tax Rules On Gold Storage

While the CBDT has set a limitation on storing physical gold when the source is not known, gold can also be kept digitally, on which there is no legal limit, although daily transactions are capped at Rs 2 lakhs. Additionally, there is no short-term capital gains tax if held for less than three years. However, a long-term capital gains tax of 20% applies to holdings beyond three years.

Further, gold can also be stored in the form of Sovereign Gold Bonds (SGBs) and individuals can only invest a maximum of 4kg per year in SGB. The holdings used as collateral by banks are typically not included in the investment ceiling.

Further, gold ETFs can also be another way of holding gold assets.

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