500 grams and unmarried women up to 250 grams without papers. Whereas for men, the CBDT has fixed a limit of 100 grams for each male member of the family, irrespective of their marital status. To this extent gold cannot be confiscated even during raids by the Income Tax Department.
This means that if you have valid sources and documents available to you to keep gold, then there is no limit for this, but these rules have been made only to relieve the taxpayers from confiscation of their jewelery during raids.
What are the tax rules on gold?
Determination of tax on gold investment depends on the period of holding, ie, the period of holding by the taxpayer. If gold is held for more than 3 years, it is taxable as Long Term Capital Gain (LTCG) at 20 per cent (excluding education cess and surcharge) and short term capital gain as applicable to the investor. Taxable at tax slab. Gold ETFs/Gold MFs are also taxable like physical gold.
Whereas in case of bonds, if they are held till maturity, they are tax-free. However, capital gains are payable on transactions of physical gold or ETFs or Gold MFs. The bonds are traded in demat form on the exchanges and can be redeemed after the fifth year. If the bond is sold before maturity, it is taxable at 20 per cent.