How Much Gold Can You Legally Keep at Home in India?

You may hold gold at home for personal use, investment, or future financial needs. However, you must follow documentation, valuation, and reporting rules to avoid scrutiny under Indian tax laws.

Gold remains one of the most trusted forms of wealth in Indian jewellery households. While the Gold Control Act no longer restricts ownership, the Income Tax Department of India monitors high-value transactions to prevent tax evasion. Therefore, rules exist around documentation, valuation, and justification of stored gold.

There is no absolute cap on ownership. Instead, India follows the principle of justification in its gold storage rules. If officers question your holdings, you must show proof such as purchase bills, gift deeds, or inheritance papers. But the question is how much gold is allowed without proof in India? Without proof, acceptable possession limits apply, which we will discuss in the sections below.

Gold storage rules in India apply limits per individual, not per household. This means a family of four could store more gold collectively if limits are distributed and justified.

According to the gold storage rules in India, storing gold at home is not taxable; taxes apply only to the purchase or sale.

• GST on Gold: 3% on physical purchase
• Capital Gains Tax India:

• Short-term (<36 months): added to total taxable income
• Long-term (>36 months): 20% with indexation

If you receive gold as an inheritance or a gift from a specified relative, no tax applies until it is sold.

You may buy unlimited gold as per the gold storage rules in India. However, a purchase value above ₹2 lakh requires:

• PAN Card Requirement

• KYC mandatory purchase documentation

• Payment methods traceable through banks

These rules ensure gold without IT scrutiny remains compliant.

Up to 500g for married women, 250g for unmarried women, and 100g for men is accepted without questioning. Larger holdings must be justified during an official assessment.

If you need liquidity, you may apply for a gold loan without selling jewellery. The gold remains legally yours throughout repayment.

Yes, you may pledge the metal under a secured gold loan agreement. After full repayment, your jewellery is returned in its original condition.

The loan amount depends on:

• Gold weight valuation

• Metal purity (usually 18K–24K)

• Current gold per gram rate

• Applicable Loan-to-Value Ratio (LTV) capped under RBI guidelines on gold

You may use a loan calculator in India online to estimate eligibility.

Home storage offers convenience, yet risk depends on protection. Consider:

• Home locker safety systems

• Smart vault monitoring

• Comparing bank locker vs home locker based on cost, access, and insurance

According to the gold storage rules in India, if the gold is meant for future collateral use, you must maintain invoices and identity-linked purchase records.