How much gold can one keep at home? Know all details here

If you keep gold beyond the specified limit, then it will require income proof, and will be subject to investigation and potential seizure.

Gold remains a valuable investment option. Many Indians prefer to keep gold in their homes, be it in the form of jewellery or coins. So, it becomes important for us to know how much gold we are allowed to keep in our homes.

The Central Board of Direct Taxes (CBDT) had earlier directed its officials to not seize any gold ornaments and jewellery up to a specified limit on the basis of a person’s marital status, gender, and relationship as a family member to the individual being subject to a tax raid.

In India, married women are allowed to keep up to 500 grams of gold jewellery and ornaments, without ant proof, as per the Income Tax notification on 11 May 1994.

The maximum amount of physical gold that unmarried women can keep at home is 250 grams. Men can keep up to 100 grams of gold whether they are married or not. If you keep gold beyond the specified limit, then it will need income proof and will be subject to investigation and potential seizure (if proof is not there).

According to Manish P. Hingar, CEO and founder at Fintoo, the amount of gold you are holding should be reflected in your Income Tax Return (ITR). He further added that your holding needs to be supported by the source and amount of income you declared in your ITR as a taxpayer. If this is not the case, then your gold can be seized and a penalty may be imposed on you by an assessing officer for the underreported income.

For example, gold coins and bars can be seized even if they are kept within the specified limit in case there are no necessary documents that prove the acquisition, according to the Chartered Club, a tax-related information platform.

According to the World Gold Council (WGC), India purchased 191.7 tonnes of gold amounting to Rs 85,010 crore in Q3 2022 and defied the international gold investment trend as well by reporting a positive gold investment figure. The country’s demand for gold increased by 14 per cent to stand at 191.7 tonnes in Q3 2022.

According to Hinger, it is best for people to only keep the bare minimum of jewellery which they will regularly use, and the rest should be kept in their bank locker.

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