Gold storage limit: You can keep jewelery at home, provided that if you are asked about the source of income of the money with which you have purchased gold, you should know about it. There are some limitations on purchasing unaccounted gold jewellery.
At the same time, according to the Central Board of Direct Taxes (CBDT), there is a limit for possessing gold jewelery without showing any proof. The range given below is what you can keep in your home without any hassle and you will not have to provide any proof for it.
A married woman can keep up to 500 grams of gold.
An unmarried woman can keep 250 grams of gold.
A person can keep only 100 grams of gold with him.
Can gold be seized during raids?
The rules state that officials cannot seize gold ornaments or jewelery from a house during a search operation or raid, provided the quantity is under the limit prescribed by the government.
Is there any tax on keeping gold?
Gold received from friends or relatives is not taxable. If you decide to sell it, capital gains tax is applicable. If you keep gold for less than three years then STCG will be applicable, whereas if you choose to sell it after keeping it for more than three years then LTCG will be applicable. The proceeds from the sale will be subject to tax, which is 20% with indexation benefit.