Gold is a highly treasured metal in India, having a sentimental value attached to it. It symbolises traditions, love, and customs and passes through generations. People buy gold during various ceremonies and festivals like wedding ceremonies and Dhanteras and as gift items.
Unarguably, gold acts as an ideal investment choice for people since there is technically no gold limit in India, provided the owner can provide proper proof of inheritance or investment. To know more about gold storage rules in our nation, keep reading.
While purchasing gold, make sure to buy it with valid bills of receipt and keep the tax invoices for future reference. By doing so, you can avoid trouble in the event you need to explain its source. As per the press release of CBDT of 1st December 2016, there is no gold holding limit in India as long as the source of asset or inheritance can be clarified.
However, it is vital that the earnings of the assessee should be in accordance with the amount of gold he/she possesses.
Furnishing the required documents as proof of your holding can help avoid inspection and seizure by the department of income tax. Or else, the assessing officer has the right to seize the entire gold you are holding.
Proof of investment in gold can establish its source. Other than tax invoices during purchase, you may need to furnish proof if the gold is inherited or gifted to you. In such a scenario, it would be very helpful if providing any receipt of the item in the first owner’s name is possible.
Otherwise, submitting a deed of the family settlement or deed of gift declaring the transfer of gold items to you is also possible. Conversely, if no such paper is available with you, the inspector can evaluate the status of your family, traditions, and customs to determine if your claim is true or false.
Tax on income under section 115BBE is 60%
Surcharge (subject to general cess and cess for higher education applicable) is 25% of the taxed amount
A penalty of 10% will be levied on the above tax amount u/s 271AAC (In the event wherein the income is not shown in a tax return file u/s 139)
As specified by CBDT, gold holding limits in India without need for proof for a married woman is 500 gm, for an unmarried woman is 250 gm and for a person is 100 gm. For any amount higher than this, the owner must be able to furnish a valid proof of source of such gold.
In India, you can store gold in bank lockers, digital gold, metal depositors, and even secret storage in your home.
While buying gold, ensure that it has the BIS Hallmark that certifies its genuineness, cost per gram, exact weight, purity level, and other charges.
Yes, you can send gold for commercial purposes like stock transfer. However, to do so, you will need an E-way bill.
Make sure to verify if the jewellery you are buying is hallmarked, purity level, cost per gram, accurate weight and additional making charges.
The state of Karnataka, also known as the 'Land of Gold', is the largest producer of gold in India. It produces nearly 80% of the gold in this country.
You can buy gold adhering to the gold limit in India as by CBDT. The limit for a woman who has married is 500 gm, for an unmarried woman, 250 gm and for a man, 100 gm.