How Much Gold Is Safe at Home Without Triggering Income Tax Scrutiny? Know CBDT Guidelines

As we all are aware, the festive season is going on, and Hindu families have great faith in buying gold on festivals like Dhanteras, Diwali, Bhai Dooj and all. Hence, gold prices are continuously fluctuating and hitting new prices every day.

It is always a private decision of the family to buy gold, silver or any other precious items during the festive season; then it also becomes crucial to be aware of the limits of their storage that do not cause any tax litigation, exceeding which can result in income tax scrutiny. Here in this article, we have discussed the limit of storing Gold in the home:

How Much Gold Keeping in the Home is Safe from Tax Litigation?

One of the chartered accountants says the Income Tax Act does not mention any specific limit regarding how much gold (jewellery, ornaments, or coins) one should keep in his/her home to be safe from income tax scrutiny. But the Central Board of Direct Taxes (CBDT) has released instructions for income tax search and seizure operations. These rules explain how much gold is usually allowed without being seized during such checks.

According to the CBDT Instruction No. 1916, dated 11 May 1994, the following qualities of gold jewellery are considered safe household holdings and are usually not confiscated during any searches:

• 500 grams per married woman
• 250 grams per unmarried woman
• 100 grams per male member

These limits are not legally compulsory or announced by the government but are administrative guidelines to ensure fair treatment during searches.

The chartered accountant said, “If a person has more gold than the allowed limit, it is not automatically treated as suspicious. They can keep it or explain it by showing documents like purchase bills, inheritance papers, or gift records.“

Although there is no legal limit on how much gold a person can keep at home. However, it must come from legal, declared, and traceable sources. The CBDT’s suggested limits are only a guide for what usually will not be seized during a search, not a rule on how much you can own.

Is it compulsory to Disclose Gold Holding During ITR Filing?

Taxpayers possessing aggregate income over Rs. 1 crore are required to disclose all assets and liabilities owned by them in Schedule AL (assets and liabilities) of the Income Tax Return (ITR) from the financial year 2025-26 (assessment year 2026-27).