How much silver you can keep at home without tax implications and when to report in ITR

If you are also among those planning to buy silver, you might be wondering how much of the precious metal you can keep at home without attracting tax implications. And, do you need to report your silver holdings in your income tax return? Here are answers to these queries with inputs from CA Dr Suresh Surana:

Similar to gold, there is no statutory limit on holding silver (coins, jewellery, utensils, etc.) at home under the Income Tax Act, 1961.

Ownership of silver is unrestricted if sourced legally, for example, through purchases and inheritance.

The taxation of silver occurs only when you sell it and realise some capital gains. "Taxation occurs only on sale (capital gains) or unexplained wealth during raids," said Dr Surana.

Even as there is no limit on the amount of silver that you can keep at home, it is advisable to keep proof of your holdings, especially if you have a very large amount of silver items at home.

In simple words, if you have purchased silver either through a jeweller/dealer or online platforms, you should keep the original bills. This will help in case you land in any income tax probe in the future.

"CBDT guidelines do not specify silver limits like gold's, but authorities may question large, undocumented holdings. Silver jewellery and coins are treated as capital assets. Taxpayers should maintain bills and records for compliance," said Dr Surana.

Do you need to disclose your silver holdings in ITR?

Yes, if your total income is over ₹1 crore. Such individuals are required to disclose their assets (including silver and gold) and liabilities under Schedule AL of the Income Tax Return (ITR) from FY 2025-26.

"It is pertinent to note that for individuals with total income exceeding ₹1 crore in FY 2025-26, details of such holdings must be disclosed in Schedule AL (Assets and Liabilities) of the Income Tax Return (ITR)," said Dr Surana.