What is the limit for keeping gold at home? Know the rules of the Income Tax Department

News, Digital Desk- (Gold Rules 2025) Diwali is approaching, and on Dhanteras, every household in India purchases gold, silver, and other items. 

Before buying gold on Diwali or Dhanteras, it's important to know how much gold you can legally keep at home. If you don't know, find out now, or the tax authorities might come knocking amidst the Diwali lights! 

Gold is not just a jewel, it is an Indian tradition.

In India, gold isn't just a jewel, but a symbol of good fortune, purchased on every auspicious occasion. As this love for gold grows, the government begins to worry about accounting.

What does the Income Tax Act say?

First, understand that there's no limit on gold possession in India. You can fill your entire locker, or turn your home into a golden temple—provided the gold is purchased from legitimate earnings. 

Meaning, if you acquired the gold from tax-paid income, inheritance, or a gift, there's no restriction. But if the gold is unbilled, unaccounted for, and simply for "hiding," then the tax department is sure to question you.

This limit applies during the raid.

According to the rules of the Central Board of Direct Taxes (CBDT), if the Income Tax Department ever raids your house, then a certain amount of gold is “non-seizable” i.e. it cannot be confiscated.

How much gold can you keep?

1. Married women: Up to 500 grams of gold
2. Unmarried women: Up to 250 grams of gold

Men: Up to 100 grams of gold

Gold up to this limit is considered "family use" and officials can't touch it. But if you find more than this, you'll need to provide a source—such as a bill, income record, or proof of gift.

Keep the bills and proof, otherwise it will be costly.

If you've purchased jewelry, be sure to keep the bill. Inherited it from your mother or grandmother? Keep the documentation or a copy of the will. Received a gift at a wedding or function? 

Remember the name of the giver and the occasion – these will come in handy later. Because if you can't prove the source of the gold, it will be considered "undisclosed property" – and could result in a hefty fine or tax penalty.

The law states that possessing gold isn't prohibited, but there just needs to be proof. You can possess 50 kilograms, not 500 grams, and no one will say anything—if you can demonstrate that it was purchased legally.

Tax on selling gold, not on keeping it

Many people think that "even holding gold is taxable"—absolutely wrong! Keep gold at home, and there's no tax. But if you sell it and make a profit, you'll have to pay capital gains tax.

Short-term tax if sold before 3 years

Long-term tax (20% + indexation) if sold after 3 years

FAQs-

Q1. Is gold stored at home taxable?
No, it's not taxable until you sell it.

Q2. Can all gold be confiscated during a search?
No, up to 500 grams of gold belonging to a married woman, 250 grams to an unmarried woman, and 100 grams to a man are protected.

Q3. Is gold received as a gift tax-free?
If it's from a relative, then yes—it won't be taxable.

Q4. Does gold stored in a bank locker count as well?
Yes, it is part of your assets. Keep records of it.

Q5. Are the limits for husband and wife separate?
Yes, they are counted separately.