- By Aditya Pratap Singh
- Mon, 25 Dec 2023 07:27 PM (IST)
- Source:JND
The love for gold is not a new development in India, It has been a tradition of giving gold jewellery as a gift at a wedding. At weddings or some other occasions parents, other relatives, and friends gift gold jewellery to the bride and bridegroom as well. However, the majority of Indians are not aware of taxation rules on receiving gold as a gift.
Generally, tax is levied on money or property received from someone. But, there is no tax on gold received in marriage. The gift can be jewellery, utensils, furniture etc. Under Section 56(2)(X) of the Income Tax Act, the gift received by the bride on the occasion of marriage does not come under the purview of tax.
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Tax on gold as a gift?
Now, you might have wondered, If gold is given as a gift on occasions other than marriage, will it be taxed? The answer to your question is yes. But, if, it was received from some relatives then it does not come under the tax net.
How much gold can a man or woman keep?
If you do not have any proof of its source, then the rules regarding the quantity of gold apply. A married woman is allowed to keep up to 500 grams of gold. An unmarried woman can keep up to 250 grams of gold with herself. A man can possess up to 100 grams of gold without any proof of the source.
What happens with the gold found in raids
If gold is confiscated and tax is imposed on it, the tax rate is very high. Surana said that a 60 per cent tax is imposed on the value of gold. As per rules 25 percent surcharge is imposed. 4 per cent health and education cess is levied and then, a 10 per cent penalty is imposed as tax.
