In India, gold has long been regarded as a symbol of prosperity and security. However, the question often arises in people’s minds about how much gold is legally permissible to keep at home and whether it can be confiscated during an income tax raid. Many types of misunderstandings are also spread among the people regarding this.
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Is there any limit to keeping gold at home?
The government has not imposed any fixed limit on keeping gold at home for common people. That is, you can buy and keep as much gold as you want. But the important condition is that the source of gold should be legal. It should be from your declared income, savings, or family inheritance.
How much gold will not be confiscated in an income tax raid?
If the Income Tax Department raids your house and you do not have the purchase papers, even then, gold up to a certain limit will not be confiscated. The Income Tax Department has given clear guidelines for this. Up to 500 grams of gold with a married woman, up to 250 grams with an unmarried woman, and up to 100 grams with a man will be considered safe without showing papers.
Is it possible to keep more gold?
If you have a bill, invoice, or inheritance papers of a gold purchase, then you can keep more gold than the prescribed limit safe at home. The presence of these documents proves that the gold has been purchased from your legitimate source.
When will the tax be levied?
Keeping gold at home is not taxable in itself. Tax will be levied only when the source of gold is found to be linked to suspicious or undeclared income. In such a case, the Income Tax Department can take action against it. Therefore, it is very important that all the papers and records related to the purchase of gold are kept safe.
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The right way to keep gold safe
If you keep gold at home, then its real safety lies in the papers. Be it a bill of purchase, an invoice, or inheritance-related documents, all these should be kept safely. This proof will make your gold safe in a tax investigation and save you from unnecessary trouble.