The majority of Indians have always possessed some gold but their obsession with it has only gotten greater over time. Indians are believed to own the majority of the world's gold.
CBDT has set a limit of 100 grams for each male family member, whether they are married or not. (Photo credit: PTI)
Key Highlights
- There is no limit on the amount of gold one can own in India.
- Earlier, Gold Control Act limited gold possession quantity in the country.
- It is legal for married women in India to own up to 500 grams of gold only.
New Delhi: Dubbed ‘Sone Ki Chidiya’ or the ‘Golden Bird’ in past, India, has had a special place for gold for a long. The yellow metal has a long history in India and its attractiveness and elegance had also drawn people from all over the world to the country. Even though the majority of Indians have always possessed some gold, their obsession with it has only gotten greater over time. According to several reports, Indians are believed to own the majority of the world’s gold. In addition to being an essential component of every Indian household, regardless of religion and class, most Indians view it as a family inheritance. It also serves as a significant status symbol in our country and is frequently regarded as the best present at Indian weddings and other religious celebrations. Many also buy it for investment purposes only.
In Indian history, gold has been more than just an investment; it has also become a culturally significant metal that has a place in both Indian homes and hearts. Even though the majority of Indian families purchase and own gold, people should be aware of the legal limits on how much gold they can acquire.
Gold possession rules in India
Our country established the Gold Control Act in the year 1968. This law prohibited citizens from having more gold than was specified. However, when this act was repealed in 1990, the cap on gold ownership was also removed. As a result, there is no limit on the amount of gold that can be held in India as long as you have a legitimate source and documentation of the gold held.
There is no limitation on owning gold jewellery of any quantity, according to a press release from the Central Board of Direct Taxes (CBDT) dated December 1, 2016. CBDT clarifies that as long as the investment or inheritance source can be substantiated it is not illegal for one to hold any amount of gold. However, it is crucial that the assessee’s income correspond to the amount of gold possessed. By providing the requisite proof of such possession, one can avoid the income tax division’s inspection. On the other hand, the assessing officer has the power to seize any gold that is held by one if they don’t have the required proof for it.
However, the CBDT’s instruction to its agents specifies not to seize any gold jewellery or ornaments up to a specific amount depending on the person’s gender and whether or not they were married.
How much gold can you own in India?
According to government regulations, it is legal for married women to own up to 500 grams of gold, whereas it is illegal for unmarried women to hold more than 250 grams of the yellow metal. However, the CBDT has set a lower limit of 100 grams for each male family member, whether they are married or not. Any gold ornament won’t be seized by income tax officials if one holds it within the aforementioned limit.
Furthermore, there are no restrictions on who can own gold jewellery or ornaments as long as they can prove their procurement. Simply put, if a person retains more gold at home than is allowed, he or she must be able to justify how the extra gold came into the household.
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