Gold is not just for investment. But it is also bought for pleasure. Be it Akshaya Tritiya or Dhanteras, no excuse is needed to buy gold. Falling gold prices make people happy. Provides investment opportunity. Gold is one of the most preferred investment options for Indians. Most Indian families have a tradition of keeping a gold reserve. It is believed that gold is a companion of bad times. That’s why everyone, be it a woman or a man, buys gold. But, do you know how much gold you can hold in a lifetime? How much gold should be kept within legal limits? What are the rules related to this? Let’s know…
What does the rule say?
According to section 132 of the Income Tax Act 1961, the tax authorities have the power to confiscate jewellery, bullion or other precious metal found in excess of the prescribed limit. The law also mentions how much gold a person can keep with him.
A married woman can keep a maximum of 500 grams of gold. An unmarried woman can keep a maximum of 250 grams of gold with her. At the same time, men are allowed to keep only 100 grams of gold. However, if a person gives a valid source and proof of the gold kept with him, then he can keep as much gold at home as he wants. But, the limit for keeping gold in the house without revealing the source of income is fixed. If the gold is kept in the house within the prescribed limit, the Income Tax Department will not confiscate it.
What if gold kept more than the limit?
It has two conditions. First, this person should be such a person who does not file IT return. Second, this gold may not be in the form of jewellery, it can be in the form of coins or bars. There is no legal limit to hold gold in the form of jewellery, but you will have to provide income proof. If the jewelery is inherited, then its will has to be shown. Where did the gold come from, it will have to be told to the Income Tax Department with proof. The CBDT had issued a statement on December 1, 2016, clarifying that if a citizen has a valid source of inherited gold and can prove it, then he can keep any amount of gold jewellery.
Details to be given in the income tax return
If a person’s taxable income is more than Rs 50 lakh (annual), then he will have to give details of gold jewelery and its value in the income tax return. There should be no difference between the declared value of the jewelery given in the return and its actual value. If there is a difference, the reason for this will have to be given.
Gold received as a gift is not taxable
If someone has received gold jewelery of less than Rs 50000 as a gift or has inherited gold, jewelery or any other jewelry, then it does not come under the purview of tax. But, the person has to prove that it is gifted or inherited by him. For inherited gold, it should be mentioned in the family settlement agreement or will. At the same time, for the gold found in the gift, there should be a receipt in the name of the giver.
Sources: – Zee News