Gold Jewellery Storage Limit And Tax Rules; Here's All You Should Know

Have you kept gold at your home without any bills and are worried about income tax notices? Keeping gold without any bill is indeed illegal, and you may get an income tax notice at any time. So, what can an individual do in such a situation? Don't worry, here is a solution. 

Pankush Chhabra, a well-known finance influencer, shares his worthy guidance on keeping gold without any bill. He highlights CBDT (Central Board of Direct Taxes) rules and regulations in which there are limits for holding gold jewelry and ornaments without showing proof and providing a clear structure for taxpayers. Here are some details from the CBDT regarding keeping gold without any proof.

• Married Women: keeping up to 500 grams of gold
• Unmarried Women: keeping 250 grams of gold
• Child if Son: 100 grams of gold
• If Daughter: 250 grams of gold
• Men: Keeping 100 grams of gold 

What if you have more gold than this?  

If the assessee has gold that is above this limit and fails to provide an explanation or the explanation given is not satisfactory, then the same shall be taxable under section 69B at the rate specified in 115BBE of the Act. The rate specified is 60% plus a surcharge of 25% Plus an HEC of 4% and a penalty of 10% on such tax (which amounts to 78%).

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As you now know, keeping gold without complete documentation can lead to crucial legal and financial complications, but after knowing the guidelines set by the Central Board of Direct Tax (CBDT) and following expert advice like Pankush Chhabra, individuals can avoid these risks. By doing this, you can secure your gold holding and ensure compliance with tax regulations, providing peace of mind and financial security. 

Also Read: Understanding the Truth About Mutual Fund Fees: Udayan Adhye