Gold has always been one of the most favoured investment options for Indians. At a time when inflation is spiking, it is further likely to gain as a hedge. Recent reports of surging gold imports indicates that the demand for physical gold is on a rise in the country.
While some people buy it for investment purposes, others go for it on special occasions like festivals and weddings.
But how much gold can you own without earning taxmen’s ire?
Although most Indian families own gold, one should be aware of the amount of gold that can be legally held. It is important to know what must people do to remain legally correct and to keep income tax authorities at bay?
Well, there is no real limit on the amount of gold jewellery or ornaments you can own as long as you can justify where they came from. The Central Board of Direct Taxes (CBDT) has stated that there is no cap on keeping gold jewellery if the source of investment or inheritance can be clarified. The taxman, however, can check or challenge the source of gold kept at a residence or in a bank locker
Section 132 of the Income-Tax Act of 1961, gives the Indian tax authorities the power to seize any unidentified jewellery, bullion, or valuable articles discovered during a search.
As per tax experts, if the origins of your gold investments are legitimate, you don’t have to worry.
As a proof or evidence of the same, one can furnish invoices in case of original purchase, a copy of Will or family settlement deed in case inheritance jewellery, and a gift deed in case of jewellery received as gift.
However, it has been clarified by the ministry of finance that jewellery and ornaments within permissible limits will not be seized, even if prima facie, it does not seem to be matching with the income record of the assessee.
How Much Gold Can You Hold?
| Married Woman | 500 grammes |
| Unmarried Woman | 20 grammes |
| Males | 100 grammes |
Having said that experts say, one must preserve all transaction invoices. If the jewellery you purchased was traded for something else, it’s a good idea to keep all of the invoices for labour costs, as well as the initial purchase invoice.
