Indians’ attachment to gold will hardly end so soon. Gold in India is not just an expensive metal, it is a sentiment. It is deeply ingrained in our tradition. Gold is the most reliable investment of Indian household.
Every family wants to invest something in gold, but do you know that there is a limit on how much gold you can keep in the house and there are different tax rules regarding keeping gold in the house? If you don’t know, then absolutely know.
Who can store how much gold?
There are some rules of CBDT (Central Board of Direct Taxes) regarding who can keep how much gold in the country. Accordingly,
A married woman can keep up to 500 grams of gold with her.
A non-married woman can keep up to 250 grams of gold with her.
A man can keep up to 100 grams of gold with him.
However, you can keep gold in the limit above this also, but you should have an answer from where you have got this gold.
What is the tax rule on gold
For example, if you have bought gold from your income, which you have disclosed, or if you have bought gold with the money earned from farming, then it will not be taxed. Apart from this, if you have bought gold from it by saving from the expenses of the house or if you have inherited gold, then you will not have to pay tax on it. Yes, it is important to know where the inherited gold came from. That is, if you know the information about where your gold has come from, from which income it has been bought, then you are safe about gold storage.
Tax to be paid on selling
There is no tax on holding gold, but you have to pay tax on selling the gold kept. If you sell gold after holding it for three years, then long-term capital gains tax will be payable at the rate of 20% on the proceeds of this sale.
If you sell gold within three years of buying it, then the proceeds will be added to your total income, and will be taxed according to the tax slab you fall under as a taxpayer.
– If we talk about Sovereign Gold Bond instead of physical gold, then the same rule will be applicable to it too. The income you earn from its sale will be taxed as per your taxable bracket. It will attract 20% LTCG (Long Term Capital Gains Tax) after indexation and 10% LTCG without indexation.
If you hold the bond till maturity, then you will not have to pay any tax on its interest rate.
Under what circumstances will the seizure happen and in what circumstances not?
If gold is kept at home within the limits mentioned above, it cannot be confiscated during investigation. But this rule will be applicable only on gold kept in the name of family members. If someone else’s gold is kept in the family, then it can be confiscated. Your gold is safe as long as you can prove the source of income.
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