Income Tax Has Established New Regulations Governing The Amount Of Gold That May Be Kept In The Home
Not everyone has the means to purchase gold, yet when its price drops, we are nevertheless happy. It is also said to be helpful for the family’s upcoming financial difficulties. A variety of forms of gold are available as investment options, including coins, bars, jewelry, paper, exchange-traded funds (ETFs), sovereign gold bonds (SGBs) issued by the Reserve Bank of India, mutual funds (MFs), and more.
You can purchase via. But do you know how much gold a person can legally possess in India? Despite the fact that the majority of Indian households purchase and own gold, they should be aware of the legal restrictions on the amount they can acquire. In our nation, the Gold Control Act was adopted in 1968.
Citizens were not allowed to possess any more gold than was allowed under this law. But in 1990, this law was repealed. There are now no restrictions on the amount of gold that can be owned in India, but the owner must have legitimate gold-related paperwork and sources.
Separate restrictions for men and women
According to TradeSmart President Vijay Singhania, procedures have been established for Income Tax inspectors to follow when seizing property during an Income Tax raid. These guidelines state that jewelry or jewelry cannot be confiscated entirely based on a person’s gender or marital status.
How many accessories can you hold?
Unmarried women are limited to 250 grams of gold jewelry without documentation, whereas married women are allowed to keep up to 500 grams. Contrarily, the CBDT has set a maximum of 100 grams for each male family member, regardless of marital status. To this degree, even during Income Tax Department raids, gold cannot be seized.
This indicates that there are no restrictions on keeping gold provided you have legal sources and documentation at your disposal, but these regulations were simply put in place to protect taxpayers from having their jewelry seized during raids.
What are the gold tax regulations?
Tax on gold investments is determined based on the holding time, or the taxpayer’s holding period. Gold is taxable as long-term capital gain (LTCG) at 20% (excluding education cess and surcharge) and short-term capital gain, where applicable, for investors who hold gold for longer than three years. taxed at a certain rate. Taxable investments in gold include gold ETFs and gold mutual funds.
Bonds, on the other hand, are tax-free if held until maturity. However, whether buying or selling actual gold, gold ETFs, or gold mutual funds, capital gains are due. The bonds can be redeemed after the fifth year and are traded in Demat form on the exchanges. The bond is subject to 20% tax if it is sold before it matures.
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