After a series of price hike, finally the silver rate has started to drop. As the festival season is going to over, the price of silver is expected to drop more. Now, it can be the best time for them who are willing to buy the mettle as their future asset. But, wait, don’t rush. Do you know how much silver you can keep in your house?
What does the rule say about keeping silver?
First, let’s discuss the rules for storing silver at home. Currently, the Income Tax Department has not established any rules regarding the amount of silver you can keep at home. This means that if you purchased the silver legally, meaning you have a bill or invoice, you can keep any amount. However, keep in mind that if a large quantity of silver is found in your possession during a tax survey or raid, and you lack proof of purchase, it may be questionable. In such a case, the silver may even be confiscated.
Now let’s discuss tax rules. If you earn a profit by selling silver, it is subject to income tax. If you sell the silver before three years, the profit will be considered a short-term capital gain and will be added to your income and taxed under the same tax slab. However, if you hold the silver for more than three years and then sell it, it will be considered a long-term capital gain, which is taxed at 20%, along with indexation benefits.
What does the rule say about buying coins and utensils?
The same rules apply if you sell silver coins, utensils, or jewelry. So, keep the bill handy when purchasing. Another important point: if you’ve invested in a silver ETF or digital silver, the same tax rules apply to them as to physical silver. Clearly, owning silver isn’t illegal; its source must be clean. And it’s mandatory to pay taxes on profits.
Latest silver rates
The price of silver on MCX reached Rs 1,47,720 per kg, which had closed at Rs 1,48,512 a day earlier i.e. on Thursday. On the other hand, the price of one kg silver fell by Rs 4167 (Silver Rate Today) on India Bullion and Jewellers Association (IBJA). The price of one kg silver on IBJA reached Rs 1,47,033 per kg, which was Rs 1,51,200 per kg on Thursday. Experts say that further decline in silver may be seen in the coming days.