How much gold are you allowed to keep in house as per law?
How much gold are you allowed to keep in house as per law?
If you have always been satisfied when investing in gold because it is a precious metal. It’s important to know the rules before buying and investing in it.
To stop income tax evasion, the government has made the rules very strict and under which the limit also has been fixed on how much gold you should have in your house.
If you have a special attraction towards gold. Below are some rules you need to know:
For Married Woman: Married ladies can keep a maximum of 500 grams of gold in the house.
For Unmarried Women: If you are unmarried the limit remains up to 250 grams.
For Men: whether married or unmarried, men can keep a maximum of 100 grams of gold.
Gold is preferred everywhere from marriage ceremony to puja. It is the first choice of Indians and one of the most expensive and reliable metals in the world. If you keep gold up to this limit, you don’t need to provide any proof for it.
You will not have to pay tax on gold if you have received it from your declared income, savings from household expenses.
Short-term capital gains tax will be assessed if you sell the physical gold within three years of purchasing it; if you sell it beyond that time, a long-term capital gains tax will be assessed.
The short-term capital gains will be taxed at the income tax rules slab rate and added to the total taxable income. Long-term capital gains taxes are 20%, plus a 4% cess and an additional levy, if applicable. A 3% extra GST will be charged when buying actual gold.
Digital gold depending on where you invest, the only fees associated with buying digital gold are GST on the purchase price and a few additional small fees.
The cost of purchasing digital gold has no upper limit. However, you can only spend up to 2 lakh rupees on gold in a single day.
When selling digital gold after three years, Long Term Capital Gains Tax (LTCG) is payable at a rate of 20% + cess and fee. Returns on digital gold, however, are not immediately taxable if kept for less than three years.
