Gold limit at home: The Income Tax Department has set a limit for keeping gold at home just like keeping cash. If you keep more than a certain amount of gold at home (gold limit for home) then you can come under the radar of the Income Tax Department. In such a case, the department can raid your house and confiscate that gold (IT rules for gold). To avoid any action by the Income Tax Department, know the limit of keeping gold at home beforehand.
tax on gold). Keeping gold at home is a common thing, but most people are unaware of the limit of gold they can keep at home (gold buying limit). Income Tax Department and CBDT have set rules regarding this.
If someone is found to have more gold than the set limit (income tax gold limit rules), the department can raid and take all the gold with them. You may also have to pay tax and penalty on this gold. Those who keep gold at home must know about the limit of keeping gold at home (gold limit at house) to avoid action by the department.
Who can keep how much gold at home –
If you do not have proof of income and do not know the source of gold, then after marriage a woman can keep 500 grams (gold limit for women) of gold or jewelry made of it at home. Before marriage she can keep 250 grams of gold at home. The rule of keeping 100 grams (gold limit for man) of gold at home for a married or unmarried man has been set by the Income Tax Department and the Central Board of Direct Taxes. If someone is found to have more gold than the prescribed limit at home, then he will have to pay tax (gold tax rules).
Keep proof of income and know the source of gold –
According to the Income Tax Department, those who keep gold at home (home storage gold rules) should keep proof of income and know the source of gold. After this there is no limit to keep gold at home. Those who declare the source of income in ITR can keep as much gold as they want (gold limit rules) at home. If you do not have such proof, then it will be better for you to keep gold at home according to the prescribed limit. If you do not have proof of inherited gold, then the Income Tax Department can also impose a fine.
There is no tax on this gold-
According to the rules of the Central Board of Direct Taxes, there is no tax (tax rules on gold selling) on gold acquired from farming income. Similarly, inherited gold is also tax free.
If your source of income is known, then you can buy as much gold as you want, but you will have to keep proof of it. In such a situation, you can avoid the action of the Income Tax Department. If inherited gold is sold, then tax has to be paid on it (tax rules on gold).
Tax on selling gold in two years-
If you keep gold with you for two years and sell it, then it is counted in the category of short term capital gains. In this situation, you have to pay tax according to the income tax slab on selling gold.
Tax rule on selling gold –
If you keep gold with you for three years after buying it and then sell it, then you will have to pay tax on it as per long term capital gains. If you sell gold after three years, you will have to pay 20 percent indexation tax (income tax rules for gold) and 4 percent cess.
