Buying gold? check how much gold you can hold in India?

Buying gold? check how much gold you can hold in India?

People buy gold for various occasions. In India, gold is one of the most wanted metal for ornaments, it represents customs, tradition, and love. Gold is one of the precious and costliest metal and therefore how much of gold people can hold is a significant subject matter.

Notification of CBDT

To clarify how much of amount gold people can keep including inherited and purchased the CBDT issued the clarification on 1st December 2016. This notification clarifies all the doubts relevant to holding gold jewellery and gold ornaments per person.

This circular reiterates the earlier directions issued to income tax officers in connection with seizure of gold jewellery and gold ornaments at the time of income tax raid, which was issued on 11-05-1994.

Check out the entire article to know the legality behind holding of gold.

Maximum limit to hold gold

As per the notification, there is no maximum limit to keep gold. But the person should have proper invoices for holding a gold jewellery or ornaments. In the circular, CBDT has specified the limits for seizure but there is no ceiling limit has been specified for holding gold.

Things to keep in mind while buying gold

· While purchasing a gold make sure that you are taking proper invoices of the same.

· In case of sale or exchange of gold keep the copy such exchange for future reference.

· If you are holding any gold by inheritance then keep the copy of will to validate your ownership.

Note: If the person from whom you have inherited the gold was wealth tax payer it becomes easier to establish the ownership. Though the wealth tax has been abolished still you can give wealth tax return of the person who inherited the gold as a proof for reference to establish your ownership.

Limit for holding gold if you don’t have invoices of the same

As per the notification of CBDT, the person can hold jewellery without having possession of invoices but only up to a certain limit a person can hold.

Checkout the following limits for holding gold if you don’t have invoices of the same;


Married Woman   
500 gsm   
Unmarried Women   
250 gsm   
Married Man   
100 gsm   
Unmarried Man   
100 gsm   

Tax on Gold

As per the provisions of Income Tax Act, 1961 any profit aroused out of sale/ exchange of gold or jewellery will attract tax on such profit. The gain out of such sale will be considered as capital gain.

The tax rates are different in case of short term and long-term capital gain. Check out the below table to understand tax implications on sale of gold;

Type of Gain   
Holding Period   
Capital Gain Tax Rate   
Short Term Capital Gain (STCG)   
Less than 3 years   
Slab Rate   
Long Term Capital Gain (LTCG)   
3 Years or more   
20% with indexation benefit   
Only if the net proceeds are invested in Section   54EC or Section 54F   


In India, there is no any limit for holding gold if you can explain the source of such gold. If you don’t have the invoices of gold still you can hold it up to a certain limit.

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