Silver Investment: How much silver can you keep at home, and what is the tax? Learn the rules before buying silver..

Thinking of buying silver? Learn the rules first, or you could face a tax burden on your profits. This year, silver has surprised investors with returns of over 70-80%.

After delivering even better returns than gold, investors, both large and small, are increasingly turning to silver. But before buying, it's important to understand the storage and tax rules.

How much silver can you keep at home?
This is the biggest question. However, the good news is that, unlike gold, there's no set limit on silver storage. Under the Income Tax Act, 1961, there's no limit on silver (coins, jewelry, utensils, or bars). You can keep as much silver as you wish.

The only condition is that the silver must have been legally purchased or inherited. If everything is legal, there's no tax on holding it. Tax is only applicable if you sell it and make a profit, or if undeclared assets are found during an investigation.

If you have a large quantity of silver, be sure to keep the purchase bill, receipt, or proof of payment. The original bill for silver purchased from a jeweler, dealer, or online platform will protect you during future income tax audits.

How Much Tax Will Be Charged Upon Sale?
The tax depends on whether you purchased physical silver or invested in a silver ETF or mutual fund, and for how long you held it.

What are the rules on physical silver?
Profits from selling before 24 months will be considered short-term capital gains (STCG). Tax will be levied according to your income tax slab.
Selling after 24 months will result in long-term capital gains (LTCG).
If silver was purchased on or after July 23, 2024, LTCG will be taxed at 12.5% ​​and will not benefit from indexation. Silver purchased before July 23, 2024, will be taxed at 20% with indexation.

Tax is also levied at the time of purchase
3% GST is levied on the price of silver bars, coins, or jewelry.
If purchasing jewelry, 5% GST will be levied on the making charges.

What is your advice for investors?
Silver is rising, but don't invest solely on returns. Keep a record of purchases, understand the holding period, and have a clear tax planning strategy. Only silver purchased with the right strategy will yield real profits.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.