Gold Storage Limit in India

There is no set gold storage limit in India. This makes gold a great option for investments. However, past a certain limit, the owner must submit inheritance and investment proofs. Here are the gold storage rules that you should know about.

As per a press release issued on December 1, 2016, The Central Board of Direct Taxes (CBDT) declared that there is no set limit on the gold you can own in India. You need not submit any ownership proof if the gold you own falls within a certain weight limit. This is as follows: 

• Married woman: Up to 500 g 

• Unmarried woman: Up to 250 g 

• Man: Up to 100 g

If your gold holdings cross the mentioned limits, you must report it and submit proof of ownership like the bills of receipt and tax invoices. This helps you avoid the inspection and seizure of gold by the Income Tax Department of India.

In case you have more gold than the limits mentioned above and you do not declare it to the government, it can be seized. In such cases, you are given a chance to explain the source of income for making such investments. If you fail to explain or if the given explanation is non-satisfactory, then it shall be taxable. This is as per Section 69B of the Income Tax Act of 1961.
 

Assume that you spent more money on buying gold than your recorded income sources justify. The Assessment Officer may consider this excess as additional income. As per the section, this excess amount is then taxed at the rate mentioned in Section 115BBE:

• Tax on additional income under section 115BBE is 60% 

• A surcharge of about 25% of the taxed amount is also applicable

• A penalty of 10% will be levied on the above tax amount u/s 271AAC. This depends on whether the income is shown in your tax return files u/s 139. 
   

Since there is no gold limit in India, you can store as much gold as you want if you have valid proof. When you buy gold, ensure to collect the tax invoice. If it is your inherited asset, having a family settlement deed, will etc., will be helpful.