How much gold can you keep at home as per Income tax rules?

Indians adore gold and are obsessed with it, as it represents traditions, customs, love, and a lot of emotions. It is also considered a safe-haven investment tool for many Indians

But, do you know how much gold a person can legally hold in India?

As per a circular issued by the Central Board of Direct Taxes (CBDT)  dated December 1, 2016, it was clarified that there is no limit on holding of gold jewelry or ornaments by anybody provided it is acquired from explained sources of income, including inheritance.

However,  according to Section 132 of the Income Tax Act, 1961, tax authorities can seize any jewellery, or valuable articles found at the time of search if one can not justify the source.

The circular issued by CBDT specifies that a married lady is allowed to keep up to 500 grams of gold jewellery, an unmarried lady can hold up to 250 grams and a male member of the family can keep up to 100 grams of gold ornaments and jewellery.

Under the above-specified limit, it includes both inherited and purchased gold jewellery, even if you don’t have documents for the above amount of gold jewellery, it will not be seized. However, it does not include gold bars and coins, it can be seized even if it is within the limit specified above.

What types of proof can be shown to justify the sources?

It best to show the invoice that you get on the purchase of gold from your jeweller to justify your investment. If the gold was received as a gift or inheritance, you will need to submit a copy of the ‘will’ or any other related valid document.