What Every Indian Should Know About Storing Gold at Home Legally

Manika | May 26, 2025, 16:45 IST

( Image credit : Unsplash, Timeslife )

Growing up in an Indian household, gold wasn’t just jewellery—it was heritage. Every Diwali, a thin gold coin was bought “for good luck.” Every wedding, gold bangles quietly passed from one generation to the next. I never questioned it. Until one day, my friend’s father was raided by tax officials—and what we thought was a harmless stash of family jewellery became a legal whirlwind.That’s when I realized: storing gold at home in India is not illegal—but there are important rules, limits, and fine print we all need to know. Especially in a country where gold isn’t just metal; it’s emotion, security, culture, and savings.This article unpacks everything—from how much gold you can legally keep at home to what the Income Tax department can and cannot question. If your family treasures gold, this one’s for you.

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.

Real People, Real Situations

Case 1: "My nani left me all her gold. There are no papers."

Create an affidavit stating the inheritance.
Get it signed and notarized.
Attach any proof of her ownership (old photos, family accounts, etc.)

Case 2: "I gifted my sister gold during her wedding. Will she be questioned?"

During weddings, gifts in reasonable quantity are considered acceptable.
A simple gift note from the giver is useful.

Case 3: "I have ₹10 lakh worth of gold bought over 10 years. No receipts."

Maintain a statement or diary describing when and where it was bought.
Keep any bank withdrawal entries, photos, or family declarations.

Steps to Safely & Legally Store Gold at Home

Store bills and receipts in a digital folder.
Keep a declaration of who owns what (especially for joint families).
Use lockers or vaults at home with insurance.
Avoid large cash transactions for new gold purchases.
Talk to a CA if your family owns a large amount. Create a paper trail now.

Respect the Sentiment, Follow the Law

For millions of Indians, gold is more than wealth—it's emotion, memory, and security. But what’s emotional for us must still make legal sense on paper.

If your family stores gold at home, that’s fine. Just be smart about it.

Paperwork is peace of mind.
Saying “It’s been in the family” is not enough.
Inherit your gold—but also inherit the wisdom of legal clarity.

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