New Delhi: Today, buying gold on the occasion of Dhanteras is considered very auspicious. In such a situation, most people buy gold on this day. In such a situation, if you are preparing to buy gold, then this news can be of your use. It should not happen that you have bought gold heavily and the notice of income tax reaches your home.
By the way, if you want to buy gold, you can tell where did the gold come from. You can give its valid source and proof, then you can keep gold at home as much as you want, but if you want to keep gold in the house without revealing any income source, then there is a limit.
How much gold can you keep?
According to the rules, married women can keep 500 grams of gold, unmarried women 250 grams, and men only 100 grams of gold without providing income proof. The Income Tax Department will not confiscate gold jewelry if gold is kept in the house within the prescribed limit in all three categories.
At the same time, if gold is kept in the house more than the prescribed limit for different categories of people, then it will be necessary to give income proof to the person. Where did the gold come from in this, this proof will have to be given to the Income Tax Department? The CBDT had issued a statement on December 1, 2016, stating that any amount of gold jewelry and ornaments that a citizen can hold, if he has a valid source of gold available with him, including inherited gold, and can attest to it.
Information to be given while filing ITR
If someone’s annual income is more than Rs 50 lakh, then there should be no difference between the declared value of jewelry and their original value in the Income Tax Return or ITR file. Otherwise, you will have to explain the reason for this.
Know tax rules?
According to media reports, 3 percent GST has to be paid on the purchase of physical gold. On the other hand, if we talk about tax, then the tax liability on selling physical gold by the customer depends on how long you have kept them with you. If the gold is sold within three years from the date of purchase, any gains arising from it will be treated as short-term capital gains and will be added to your annual income and tax will be calculated as per the applicable income tax slab.
Conversely, if you decide to sell gold after three years, the proceeds will be treated as long-term capital gains and will attract a tax liability of 20 percent. Along with indexation benefits, 4% cess and surcharge will also be applicable.