28/05/2025
According to the Income Tax Act of 1961, the amount of gold an individual can hold varies based on marital status and gender. Here's a breakdown ¹:
- *Married Women*: Can hold up to 500 grams of gold without needing to justify its source.
- *Unmarried Women*: Can hold up to 250 grams of gold without needing to justify its source.
- *Married Men*: Can hold up to 100 grams of gold without needing to justify its source.
- *Unmarried Men*: Can hold up to 100 grams of gold without needing to justify its source.
If you exceed these limits, you'll need to provide documentation to prove the gold's origin, such as:
- Purchase invoices
- Inheritance documents
- Gift deeds
It's also essential to understand the tax implications:
- *Short-term Capital Gains Tax*: Applies if you sell gold within 2 years (as per the 2024 budget update) or 3 years (as per previous rules) of purchase, taxed according to your income tax slab.
- *Long-term Capital Gains Tax*: Applies if you sell gold after 2 years (as per the 2024 budget update) or 3 years (as per previous rules) of purchase, with a tax rate of 12.5% without indexation.
Additionally, consider the following ²:
- *No limit on digital gold purchases*: You can buy digital gold without any upper limit.
- *Sovereign Gold Bond (SGB) limit*: You can invest up to 4 kg of gold per year in SGBs.
- *Gold ETFs and Mutual Funds*: No fixed limit on investment, but tax implications apply based on holding period.
