Before you go shopping for Diwali, find out how much gold you can keep at home. You'll be surprised to learn this income tax rule..

Gold Rules 2025: Diwali is approaching, and on Dhanteras, every household in India buys gold, silver, and other items. But before Diwali and Dhanteras shopping, do you know how much gold is legal to keep at home according to the Income Tax Department? If you don't, find out now, or the taxman might come knocking amidst the Diwali lights!

Gold - Not Just Jewelry, It's an Indian Tradition

In India, gold isn't just jewelry; it's an auspicious sign. Whether it's a wedding or a housewarming ceremony, Teej or Diwali, buying gold is considered auspicious on every occasion. But when this love becomes a bit excessive, the government says, "Keep some accounts!"

What does the Income Tax Act say?
First, understand that there's no set limit on gold possession in India. You can fill your entire locker, or turn your home into a golden temple—provided the gold is purchased from legitimate earnings. This means that if you acquired gold from taxable income, inheritance, or a gift, there are no restrictions. But if the gold is unbilled, unaccounted for, and is merely for "hiding," then the tax department is sure to raise questions.

This limit applies during a raid.

According to CBDT (Central Board of Direct Taxes) rules, if the Income Tax Department ever raids your home, a certain amount of gold is considered "non-seizable," meaning it cannot be confiscated.

How much gold can you keep?

Married women: Up to 500 grams of gold
Unmarried women: Up to 250 grams of gold
Men: Up to 100 grams of gold
Gold up to this limit is considered "family use" and officials cannot touch it. However, if more than this amount is found, you must disclose its source—such as bills, income records, or proof of gift.

Keep bills and proof, otherwise it will be costly.
If you purchased jewelry, be sure to keep the bills. Did you inherit it from your mother or grandmother? Keep a copy of the will or a will. Did you receive it as a gift at a wedding or function? Remember the name and occasion of the gift – these will come in handy later. Because if you can't prove the source of the gold, it will be considered "undisclosed property" – and could result in a hefty fine or tax penalty.

The law states that possessing gold isn't prohibited; there just needs to be proof. You can keep 500 grams, not 50 kilograms, if you want; no one will say anything if you can demonstrate that it was purchased legally.

Tax on selling gold, not on storing it
Many people think that "possessing gold is taxable" – absolutely wrong! Keep gold at home, there's no tax. But if you sell it and make a profit, you'll have to pay capital gains tax.

Short-term tax if sold before 3 years
Long-term tax (20% + indexation) if sold after 3 years

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