How Much Gold Can You Legally Keep at Home in India

In India, gold is not just a precious metal with a favourable market value; its importance goes way beyond that. Often associated with auspiciousness and prosperity, this metal has deep cultural significance. This metal is a part of every celebration, including festivals, weddings and various other ceremonies. In almost every Indian household, owning gold is a deeply rooted and highly cherished tradition. It is not only considered a symbol of wealth but also serves as a good investment avenue by offering a good hedge against inflation.

Table of Content

• Gold Storage Limit in India
• CBDT Rules on Different Types of Gold Assets

However, many people often wonder if there is any per person gold storage limit in India, and if yes, then what is it? It is important to understand how much gold is allowed in India without any regulatory concerns. Especially if you’re someone who makes regular purchases and uses gold as your primary investment method, it is important to know how much gold you can keep at home.

Here is a detailed explanation of the legal aspects of gold ownership in India:

Gold Storage Limit in India

There is no specific limit for how much gold one can keep at home legally in India. But the only condition is that the owner should be able to explain the source of income which was used to make the purchase. These gold assets can be in any form, such as jewellery, coins, or bars. Additionally, if an individual purchases gold with revealed income sources, agricultural income, legally inherited money, and a reasonable amount of household savings, he/she doesn’t need to pay any taxes.

For those who are unable to provide a valid proof of income source, there are certain limits on gold storage. These are:

• Married woman: 500 grams of gold
• Unmarried woman: 250 grams of gold
• Men (married or unmarried): 100 grams of gold

If an individual’s gold assets exceed the specified limit, based on their gender or marital status, it can lead to asset confiscation by tax authorities.

CBDT Rules on Different Types of Gold Assets

Until a few years back, these limits were only applicable on physical gold assets. But as the concept of digitisation gained immense popularity, some changes were made. Nowadays, there are various forms of gold ownership, such as gold bonds, gold ETFs, etc.

Here is how various forms of gold ownership are regulated in India:

Physical Gold

For physical gold, the permissible limit remains the same. As per Central Board of Direct Taxes (CBDT) rules, married women can hold up to 500 grams of gold, while this limit is 250 grams for unmarried women. Similarly, men can keep up to 100 grams of physical gold, regardless of their marital status.

Digital Gold

Digital gold is an investment avenue that has gained immense popularity in India due to the amount of convenience it offers. Since this option allows investors to buy and sell gold in digital format, eliminating the need for physical possession. While there is no legal limit on the amount of digital gold one can purchase, the total amount of transactions should not go above ₹2 lakhs in a day. Additionally, short-term capital gains tax is also not applicable if one chooses to sell his/her assets within three years. If these gold assets are held for more than 3 years, a long-term capital gains tax of 20% will be applicable.

Suggested Read: Digital Gold vs Physical Gold: Which One Should You Choose for Investment?

Sovereign Gold Bond (SGB)

SGBs are another popular option for gold investment. An individual can purchase SGBs of a maximum of 4 kilograms in a year. For SGBs, investors receive an annual interest of 2.5% on their total investment. This amount is considered a part of their taxable income, and the calculation is done according to the applicable slab.

Gold has always been one of the most cherished assets for Indians. While there are no strict rules regarding the ownership of gold, ensuring accountability is important. It is essential to keep all the relevant documents, such as purchase invoices, inheritance declarations, etc., regardless of the amount 

of gold. This helps you remain compliant with the rules put in place by CBDT and avoid any legal issues. Apart from this, it also makes things convenient for you if you opt for a gold loan in a financial emergency.

Suggested Read: What is a Sovereign Gold Bond? Pros, Cons & How to Invest

At Muthoot Finance, we offer quick and hassle-free gold loans at highly competitive interest rates. You can check all the details like the gold rate today and submit your application online. For more information, you can also visit the nearest Muthoot Finance branch.