Dear reader, here’s a quick guide on Gold keeping limit and its Income tax rules. Read this to know – How much gold, jewellery you can keep at home.
The Central Board of Direct Taxes (CBDT) has specified in its press release, dated 1st December, 2016 that there is no limit on holding gold jewellery provided that the source of investment or inheritance can be explained.
Proof for Investment / inheritance
- If purchased: Purchase Invoice of gold, and the source of income should be explained
- If acquired under inheritance or will: Copy of Will or Gift deed or other documents should be produced.
CBDT has issued clarification regarding the prescribed quantity of gold considered allowable. Gold or gold jewellery within this limit will not be seized even at the time of search and seizure operation.
How much Gold you can keep at home?
A married woman can have up to 500g of physical gold in the form of jewellery and ornaments. An unmarried woman can have up to 250g of gold. A man can have up to 100g of gold. You don’t need to submit proof for possession and investment for the following limit of gold.
|Man/ Male member (irrespective of marital status)||100g|
Thus, a married woman can hold 500 gms of physical gold in the form of jewellery and ornaments, 250 gms for an unmarried woman and only 100 gms for a man irrespective of marital status.
Now, lets understand this limit with the help of an example.
Sri Narayan’s family consists of 4 members i.e, Sri Narayan himself, his wife Smt. Sulekha and un married daughter Ms. Surbhi and son Navyug.
As per Income Tax rules, Sri Narayan’s and family total holding of physical gold jewellery should be 950 gms. No proof and explanation required upto this limit of holding.
- Sri Narayan – 100g,
- Smt.Sulekha -500g,
- Ms. Surbhi -250g and
- Mr. Navyug- 100gms.
Above that limit, Sri Narayan have to provide proper supporting document and explanation.