What Every Indian Should Know About Storing Gold at Home Legally

Is It Legal to Store Gold at Home?

Yes. 100%.

There is no restriction on how much gold an individual can own or store at home in India, as long as you can explain the source.

But here’s the catch: if you’re ever under scrutiny by the Income Tax Department—during a raid or investigation—you must be able to justify the gold through receipts, inheritance documents, or declarations.

What Are the Income Tax Rules for Holding Gold at Home?

As per

CBDT (Central Board of Direct Taxes)

guidelines, here are the non-seizable limits during a tax raid, even if you don’t have proof of income:

• For Married Women: Up to 500 grams
• For Unmarried Women: Up to 250 grams
• For Men: Up to 100 grams

This means: you won’t be questioned or have this gold seized, even if you cannot produce receipts.

However, if you have more than these quantities and cannot explain how you acquired it, the excess may be seized or taxed.

Do I Need to Show Receipts for My Gold?

Ideally, yes. If you bought gold through a bank, jeweller, or digital platform, always store receipts securely.

But what about gold that came as inheritance or gifts?

For Inherited Gold:

• Keep a will copy, gift deed, or affidavit from the family member.
• You can also show wealth tax returns from parents or grandparents (if available).

For Gifted Gold:

• A gift deed from the giver is helpful.
• If the gift came during a marriage, wedding invitation cards or photos may support the claim.

What If You Have Unaccounted Gold?

If you’re found with a large quantity of gold without explanation, the tax authorities may:

• Seize it temporarily
• Issue a notice
• Demand proof of income or file charges for tax evasion

In such cases, gold could be treated as undisclosed income and taxed up to 77.25% (including penalties) under Section 115BBE of the Income Tax Act.

Is There a Limit to How Much Gold I Can Buy?

There’s no cap on how much gold you can buy. But:

• If you buy gold worth ₹2 lakh or more in cash, your PAN card is mandatory.
• Payments above ₹10,000 for jewellery should ideally be made through bank transfer or cheque to stay audit-safe.
• Always ask for a bill/invoice with your name.

Digital Gold, Sovereign Gold Bonds & Bank Lockers

If storing gold physically makes you anxious, here are safer legal options:

1. Bank Lockers

• Keep gold in a locker at your bank branch.
• Charges apply yearly.
• Authorities can inspect lockers only with a warrant.

2. Digital Gold

• Buy gold digitally from platforms like Paytm, PhonePe, or brokerage apps.
• Backed by actual gold.
• Easily tracked for legality.

3. Sovereign Gold Bonds (SGBs)

• Issued by the RBI.
• No storage hassle, earns interest, capital gains exempt if held till maturity.
• Fully legal and tax-friendly.