According to the circular issued, income tax officials will not confiscate gold ornaments weighing up to 500 grams for a married woman and 250 grams for a single woman. The CBDT has clarified the prescribed amount of gold that is considered allowed. Gold within this limit will not be confiscated even at the time of registration at the evaluee's facilities. A married woman can have up to 500 g of gold.
A single woman can have up to 250 g of gold. A man can have up to 100 g of gold. A larger quantity of gold may even be left ungarnished at the discretion of the evaluating officer. Factors such as family customs and traditions may be taken into account for such a decision.
It's important to note that the limits prescribed above only apply to jewelry owned by family members. If jewelry belonging to any other person is found, it may be seized and confiscated. No, buying gold is not taxable in India. Although there is no formal limit to the amount of gold that can be stored, there are some rules you should keep in mind.
Although this system, called the gold standard, was discontinued 50 years ago, governments still see other uses of gold, mainly as a crucial reserve asset that helps build trust in a country. However, interest earned on sovereign gold bonds is subject to taxation according to applicable income tax provisions. A has made a profit of 1 lakh rupees by selling gold loans that will be treated as capital gains. In May 1994, the Central Direct Tax Board (CBDT) ordered its officials to allow the possession of small quantities of gold ornaments.
You can apply for the deduction for a residential property purchased 1 year before or 2 years after the sale of gold assets or for the construction of a residential property within 3 years from the date of the transfer. On the other hand, gold also seems to be a favorite investment option for many people, since there are no restrictions on the amount of gold a person can have. When you sell your gold asset, which may be in the form of gold jewelry, coins or ETFs, within three years from the date of acquisition, any gain resulting from such sale will be considered short-term capital gain. Long-term capital gains from the sale of gold assets entail a 20% tax rate, along with the applicable surcharge and educational payment.
The only exception to this is the case of gold traders who transact with gold as part of their business, where the profits of such transactions are taxable under the heading Business or Profession Income. If you receive gold or a gold asset as a gift, you will be taxable at the time you receive it under the heading Income from other sources, if the added value of the donations, including gold, received during the year exceeds $50,000. Solanki added that having gold on the bill is not a problem as long as the person has filled it in with the details of the asset from their ITR. The Indian Income Tax Act specifies that profits from the sale of gold bars, jewelry, coins or utensils or any other form of precious metal will be taxed as capital gains.
So there's no limit to how much gold you can keep tax-free if you're not going to sell it. The short-term capital gains tax on gold is applicable at the fixed rate of income tax, while the long-term capital gain rate on gold is 20%.