How much gold at home is safe from Income Tax? Know gold storage limit and rules before buying

While buying gold, silver or any other precious items during the festive season is an individual's or a household's private decision, it is important to be aware of the gold storage limits that do not attract any tax implications. This article explains this limit, with inputs from CA Dr Suresh Surana.

How much gold (coins and jewellery) can you keep at home without tax implications?

Dr Surana says there is no specific limit prescribed under the Income Tax Act, on how much gold (in the form of jewellery, ornaments, or coins) an individual can legally keep at home. However, the Central Board of Direct Taxes (CBDT) has issued guidelines relevant to income-tax search and seizure operations. These guidelines indicate what quantity of gold will not ordinarily be seized.

As per the CBDT Instruction No. 1916, dated 11 May 1994, the following quantities of gold jewellery are considered reasonable household holdings and are generally not seized during searches:

• 500 gram per married woman

• 250 gram per unmarried woman

• 100 gram per male member

These limits are not statutory caps but administrative guidelines to ensure fair treatment during searches.

"If an individual possesses gold in excess of these quantities, it is not automatically considered unexplained, and the taxpayer can still retain or justify the excess by producing documentary evidence, such as purchase invoices, inheritance records, or gift deeds," Dr Surana says.

Although there is no fixed ceiling on the amount of gold one can keep at home, it should be acquired from legitimate, declared, and traceable sources. This is because the CBDT’s indicative limits merely serve as a reference for non-seizure during search proceedings, not as a legal cap on ownership.

Do you need to disclose gold holdings in ITR?

Taxpayers having income above ₹1 crore are required to disclose all their assets and liabilities in Schedule AL (assets and liabilities) of Income Tax Return from FY 2025-26.