Gold Storage Rules: Gold has always been an essential part of investment and tradition in India. Everyone seems to enjoy buying gold, especially women, who love gold jewellery. But do you know how much gold can be kept at home? The Central Government has established strict rules regarding this under the Income Tax Act. The Income Tax Department’s rules state that there is no government limit on gold possession; however, it is necessary to prove the source of the gold.
According to the Income Tax Department’s rules, specific amounts of gold cannot be confiscated during a tax raid, even if you lack documents. Under these rules:
Married women: 500 grams of gold
Married women are permitted to possess up to 500 grams of gold. However, they must provide proof of the source of the gold, such as a purchase bill.
Unmarried women: 250 grams of gold
Unmarried women can possess up to 250 grams of gold. Possessing more than this amount can lead to action by the Income Tax Department.
Men: 100 grams of gold
This quantity is not subject to confiscation under any circumstances. However, if you have purchase receipts or inheritance documents, you can legally keep more than this limit at home.
Why are documents necessary?
Keeping gold at home is tax-free, but problems arise when questions arise about its source. If you can prove that the gold was purchased from declared income, inheritance, or savings, there should be no problems. It is crucial to preserve purchase receipts, invoices, or inheritance documents.
In India, gold is not just purchased for adornment; in addition to jewellery, people also consider it a valuable investment. The Income Tax Department can confiscate gold found in excess of the limit and without provenance, and you could face up to 7 years in prison and a hefty fine.