How Much Gold Can You Legally Keep at Home? What the Law Actually Says

Gold has always been India’s emotional and financial backbone. Families gift it, inherit it, and store it for security. Yet every few months, social media revives one viral question:

“How much gold can you legally keep at home before the government seizes it?”

Most people think there is a strict limit. Many even believe officers can seize your gold if it crosses a fixed number of grams.

But the truth is very different - and more important to understand.

Below is the real law, based on CBDT Circular No. 1916 (1994), Income Tax Act search-and-seizure rules, and current compliance guidelines.

Contrary to myth, the Indian government has never capped how much gold a person can legally own.

You can keep any amount of gold, as long as it comes from explained sources such as:

• Declared income
• Withdrawals from bank
• Agriculture income
• Gifts documented by family relations
• Inherited ancestral jewellery

Gold is not illegal. Unexplained gold is.

The law everyone quotes is CBDT Circular No. 1916.

It states that during an income-tax raid, officers cannot seize the following minimum gold jewellery amounts even if you cannot show proof:

• Married woman: up to 500 grams
• Unmarried woman: up to 250 grams
• Men (any): up to 100 grams

This is not a limit, only a guarantee of non-seizure during a raid.

You can legally hold much more, but for gold above these limits, officers may ask questions if income proof is missing.

Any jewellery with bills, invoices, bank statements, or gift deeds is fully protected, regardless of weight.

Even if you have 5 kg or 10 kg at home, as long as:

• You can trace the purchase
• You can show it came from declared income
• Or you can show it was inherited

…it is entirely legal and cannot be confiscated.

Most Indian families keep jewellery passed down for generations, often without bills.

The law recognises this.

You can show:

• A family will
• A statement from elders
• Proof of family wealth over years
• Old photographs, bank withdrawals, marriage records, etc.

These count as reasonable explanations, and officers are instructed to consider “customary practices” and not harass taxpayers.

India is a gold culture.

Weddings commonly involve:

• Heavy bridal jewellery
• Gifts from parents and in-laws
• Community gifting
• Stree-Dhan (legally recognised personal property of a woman)

All of this is treated as legitimate accumulation, unless it is disproportionate to the family’s known financial background.

If someone owns significant gold that:

• Has no bill
• Has no inheritance record
• Does not match their known income level
• Appears newly purchased without disclosure

…the Income Tax Department may treat it as undisclosed income.

Tax consequences can include:

• Tax on entire value
• Penalties up to 85% (depending on provisions used)
• Possible seizure during raids

Gold itself is not illegal, but lack of explanation is.



To buy gold, the following compliance rules matter:

• PAN is mandatory for jewellery purchases above ₹2 lakh (cash or card).
• Cash payments above ₹2 lakh in a single transaction are illegal under Section 269ST.
• Jewellers must report cash purchases of ₹10 lakh+ to the govt (via SFT reporting).

These rules are to track black money, not to limit personal gold ownership.

Legally you can keep gold at home — but it’s risky.

Most banks, insurers and police recommend:

• Using a bank locker for high-value jewellery
• Taking jewellery insurance
• Keeping separate photos and valuation certificates for proof
• Documenting family gifts, especially at weddings

In disputes or raids, proof protects you better than weight limits.