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How Much Gold Can You Keep at Home? Limits and Income Tax Rules

Gold is undoubtedly the most revered precious metal in our country. Understanding the gold limit per person in India is important to ensure safe and secure storage of this valuable metal at home.

Gold is the most popular metal in India. Almost every family in the country at least has some quantity of gold in the form of jewellery and sometimes coins and gold investment plans. Besides its financial value, gold is treated as an epitome of good fortune and wealth in our country. 
 

However, there is a certain limit on how much gold you can keep at home. This is where it becomes important to understand the gold limit in India. 
 

If you want to know how much gold you can keep at home, this blog is for you. We will discuss all the rules and regulations regarding the storage of this precious yellow metal at home.

What is the Gold Limit Per Person in India?

According to the Central Board of Direct Taxes (CBDT), gold purchases made with revealed income sources and exempted revenue such as agricultural income, legally inherited money that could be explained, and a reasonable amount of household savings will not be taxed*
 

Following is the allowed gold limit per person in India:
 

  • Unmarried Woman: 250 grams

  • Unmarried Man: 100 grams

  • Married Woman: 500 grams

  • Married Man: 100 grams

Note that income tax officials can not take gold jewellery from your home during the search operations if the quantity is within the allowed bracket.

Limits and Income Tax Rules on Storage of Different Types of Gold

 

 

Individuals possess various types of gold in their households. Let us understand the limit and income tax rules applicable to different gold types.
 

  • Physical Gold 

    As per the CBDT’s new circular, men can possess 100 grams of gold in the form of ornaments and jewellery irrespective of their marital status. Further, women can keep gold from 250 grams to 500 grams. For married women, the limit is 500 grams, and for unmarried women, it is 250 grams.
     

    However, if you sell your gold within 3 years of purchasing, a short-term capital gain tax will be assessed on it by the government. And if you sell the gold beyond the 3-year limit, you have to pay a long-term capital gain tax. 

  • Digital Gold 

    Another type of gold that individuals possess is digital gold, which is more profitable in terms of ROI compared to physical gold. Based on their digital gold purchase, individuals only have to pay GST @ and other small fees while buying. 
     

    As per the law, digital gold has no purchase upper limit. Individuals can spend up to ₹2 lakhs in a single day on digital gold purchases. Further, digital gold has no short-term gain tax for less than 3 years. However, one needs to pay long-term capital gain tax at a rate of 20%.

  • Sovereign Gold Bond (SGB)

    Indian citizens are only allowed to invest a maximum amount equivalent to 4 kg per year in gold investment plans like Sovereign Gold Bond (SGB). Moreover, the holdings used by banks and other financial institutions as collateral will be excluded from the investment portfolio. 
     

    The interest rate received by an SGB is 2.5% per year, which is added to the taxable income of the buyer. But after eight years, the Sovereign Gold Bonds became tax-free. 
     

    Further, no outward cost is associated with the purchase of SGB, as you do not have to pay any GST on them. 

  • Gold ETFs and Mutual Funds

    Lastly, we have Gold ETFs and mutual funds. If the Mutual funds and Gold ETFs are kept for more than 3 years, individuals need to pay long-term capital gain tax on funds when selling.

Final Thoughts

Investing in gold can be a wise decision, but knowing the right quantity of this valuable metal to keep at home is critical. It will help you understand your tax liabilities and keep you on the right side of the law. 
 

We have discussed the gold limit in India, along with answers to whether or not it is a good idea to consider gold investment plans. We hope it answers all your doubts and helps you make the right decision. 

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Tata AIA Life Insurance

A joint venture between Tata Sons Pvt. Ltd. and AIA Group Ltd. (AIA),  Tata AIA Life Insurance  is one of the leading life insurance providers in India. We post everything you need to know about life insurance, tax savings and a variety of lateral topics such as savings and investments in this space. You can access and read a host of different blogs, articles and pages at the Tata AIA Life Insurance Knowledge Center or get in touch with us with any queries or questions!

View all posts by Tata AIA Life Insurance

Frequently Asked Questions

What is the maximum limit for inherited gold in India?

There is no maximum or minimum limit of gold you can inherit without any specific tax implementations. However, you must know the income tax and wealth tax application.

What is the number of gold coins allowed in India?

There is no specific limit on the number of gold coins allowed in India. However, it is important to know the tax implications of holding gold coins at home in India.

How to safely store gold in India?

Storing large amounts of gold at home can be risky. A good idea is to use safe deposit boxes or locker services provided by banks and other reliable vault services.

Disclaimers

  • Insurance cover is available under the product.

  • The products are underwritten by Tata AIA Life Insurance Company Ltd.

  • The plans are not a guaranteed issuance plan, and it will be subject to Company’s underwriting and acceptance.

  • For more details on risk factors, terms and conditions please read the sales brochure carefully before concluding a sale.

  • This blog is for information and illustrative purposes only and does not purport to any financial or investment services and do not offer or form part of any offer or recommendation. The information is not and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.

  • Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company.

  • Every effort is made to ensure that all information contained in this blog is accurate at the date of publication, however, the Tata AIA Life shall not have any liability for any damages of any kind (including but not limited to errors and omissions) whatsoever relating to this material.

  • Tax: *Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfilment of conditions stipulated therein. Income Tax laws are subject to change from time to time. Tata AIA Life Insurance Company Ltd. does not assume responsibility on tax implications mentioned anywhere in this document. Please consult your own tax consultant to know the tax benefits available to you.

  • GST : @All Premiums, Charges, and interest payable under the policy are exclusive of applicable taxes, duties, surcharge, cesses or levies which will be entirely borne/ paid by the Policyholder, in addition to the payment of such Premium, charges or interest. Tata AIA Life shall have the right to claim, deduct, adjust and recover the amount of any applicable tax or imposition, levied by any statutory or administrative body, from the benefits payable under the Policy