Because of the attachment of Indians to gold, a large amount of gold is imported every year in the country. There are many people in the country who keep Gold Jewelery at home, but according to Income Tax Rules, there is a limit for keeping gold at home, let us know about it. In detail.
Gold is considered the safest investment option in India . Due to the sharp increase in gold prices in the last few years, it is seen as a great profitable option. At the same time, many people also keep it at home as jewelery as a hobby . Because of the attachment of Indians to gold, a large amount of gold is imported every year in the country .
However, due to the lockdown, there has been a significant decrease in the buying and selling of gold. Due to this the current account deficit (CAD) of the countryhas also decreased. People in the country buy gold in the form of jewellery, biscuits or other forms. In such a situation, it is very important to know how much gold you can keep at home.
Gold in excess of the prescribed amount can be confiscated without valid proof
There are many people in the country who keep ornaments made of gold at home, but according to Income Tax Rules, only a certain amount of gold can be kept at home. According to income tax rules, if you show a valid source and proof of purchase of gold, then you can keep any amount of gold at home. At the same time, only a fixed amount of gold can be kept in the house without a valid source. There is also a limit on keeping gold at home without revealing your income source.
Individuals can keep gold ornaments at home even without proof
According to the rules, married women can keep 500 grams of gold, unmarried women 250 grams and men only 100 grams of gold without giving income proof . In all the three categories , the Income Tax Department can confiscate the gold jewelery if gold is found in excess of the prescribed limit without any proof.
In simple words, if people of different categories keep more than the prescribed quantity of gold at home, then they will have to give their income proof. Along with this, proof of getting gold in purchase or gift (Gifted Gold) will have to be given.
On fulfilling this condition, any amount of gold can be kept in the house.
According to the Central Department of Direct Taxes (CBDT), a person can keep any number of gold ornaments if he has a valid source of gold available with him, including inherited gold, and can provide proof of the same. Apart from the valid income source, gold in excess of the prescribed quantity can be confiscated.
According to income tax rules, jewelery worth less than Rs 50,000 received as a gift or gold received by way of inheritance/will or gold jewelery and ornaments are not taxable. However, you will have to prove that the gold was gifted or inherited.
There should be no difference between the declared value of gold and the actual value
If someone has received gold as a gift or inheritance, then he will have to give other details including the receipt of the name of the person who gifted the gold. On the other hand, if gold is received as a will or inheritance, then the family settlement agreement, will or the agreement to transfer gold as a gift will have to be presented as proof.
If a person’s taxable annual income is more than Rs 50 lakh, then he will have to give details of jewelery and their value in the income tax return. Explain that there should be no difference between the declared value of jewelery and their actual value in the income tax return. If this happens then the person will have to explain the reason for this difference.
