Gold Storage Limit in India: How Much Gold Can You Keep at Home Without Inviting an Income Tax Raid?
Gold Storage Limit in India: How Much Gold Can You Keep at Home Without Inviting an Income Tax Raid?
CBDT rules define clear limits for gold possession by individuals to prevent scrutiny or seizure during tax investigations.
In India, gold isn’t just an asset, it’s a symbol of prosperity, faith, and family legacy. From wedding ornaments to festive gifts, generations have stored gold as a mark of security and cultural pride. But while owning gold is common, few are fully aware of the legal limits governing how much can be stored at home without attracting unwanted attention from the Income Tax Department.
How Much Gold Can You Legally Keep?
According to the Central Board of Direct Taxes (CBDT), individuals can hold specific amounts of gold without facing seizure during tax raids, even if their income source isn’t immediately verified. The permissible limits are:
- Married woman: up to 500 grams
- Unmarried woman: up to 250 grams
- Married or unmarried man: up to 100 grams
These limits are meant to protect households from unnecessary confiscation during searches. However, if you own more than the prescribed quantity, you must be able to prove the legal source of the gold—whether it was purchased from declared income, received as a gift, or inherited.
Inherited or Gifted Gold
There is no tax on inherited gold or gold acquired from tax-exempt income sources such as agriculture. However, it’s advisable to maintain documentary proof like gift deeds, inheritance papers, or purchase invoices to establish the source in case of inquiry.
Authorities cannot seize gold within these specified limits, even during an income tax raid.
Tax on Gold Sales
While simply holding gold at home isn’t taxable, selling it can attract capital gains tax depending on the holding period. The Union Budget 2024 revised the classification for gold investments:
- Short-Term Capital Gains (STCG): If gold is sold within 2 years of purchase, profits are added to your income and taxed as per your slab rate.
- Long-Term Capital Gains (LTCG): If sold after 2 years, the gain is taxed at 12.5% (without indexation benefit).
These rules apply to physical gold, including jewellery, coins, and bars.
Keeping Gold at Home Safely
While there’s no restriction on storing gold at home, it’s important to:
- Maintain purchase receipts or proof of inheritance.
- Store gold securely in bank lockers or safes to prevent loss or theft.
- Disclose large purchases where applicable, as transactions above ₹2 lakh must be made through PAN-linked accounts.
Owning gold in India remains a cultural and financial tradition, but understanding the rules ensures that your treasured assets stay both safe and compliant with tax laws.
Disclaimer: This article is for informational purposes only and should not be construed as legal or financial advice.
