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This
is your go-to resource for demystifying the stock market from the scratch. Each
day, we will present 10 carefully curated questions with answers that will
cover essential concepts, strategies, and terminologies. Whether you have just
entered into the market, or trying to starting your stock market journey, or
looking to strengthen your foundation, our weekly post will guide you through
the basics and beyond, making investing accessible and understandable for
everyone. Happy reading.
Day 34: Basic Stock Market Concepts
1. What is the Permissible Gold Limit for Married
Women in India?
Married
women can keep up to 500 grams of gold without facing tax scrutiny. This limit
applies to gold jewellery and ornaments. If the gold is inherited or gifted, it
is exempt from this limit, provided proper documentation is
maintained.
2. How much Gold can Unmarried Women keep at Home?
Unmarried
women can keep up to 250 grams of gold at home. This limit is set by the
Central Board of Direct Taxes (CBDT) to ensure compliance with income tax
rules.
3. What is the Gold Limit for Men in India?
Men,
whether married or unmarried, can keep up to 100 grams of gold at home. This
limit is lower than that for women and is based on CBDT guidelines.
4. Is Inherited Gold Included in the Permissible
Limits?
No,
inherited gold is exempt from the permissible limits. However, you must
maintain proper documentation, such as an inheritance deed or will, to prove
the source of the gold.
5. What Happens if I Exceed the Gold Limit at Home?
If you
exceed the permissible gold limit and cannot justify the source, the excess
gold may be seized during income tax raids. The fair market value of the seized
gold will be added to your income and taxed at 60%, plus a 25% surcharge and 4%
cess.
6. Do I need to Pay Tax on Gifted Gold?
Gold
received as a gift from relatives is tax-free. However, if the gift is from a
non-relative and exceeds ₹50,000 in value, it is taxable under the Income Tax
Act.
7. What Documents should I Maintain for Gold
Ownership?
Maintain
purchase receipts, inheritance deeds, or gift deeds as proof of legitimate
acquisition. These documents are crucial to avoid tax scrutiny during income
tax raids.
8. Can I Store Gold in a Bank Locker Instead of at
Home?
Yes, you
can store gold in a bank locker. However, the same CBDT guidelines apply. If
the gold exceeds the permissible limits, you must provide proper documentation
to justify its source.
9. What are the Tax Implications of Seized Gold?
If gold
is seized during an income tax raid, its fair market value is added to your
income. It is taxed at 60%, plus a 25% surcharge and 4% cess. A 10% penalty may
also apply if the source of the gold cannot be explained.
10. How can I Avoid Tax Scrutiny on my Gold
Holdings?
To avoid tax scrutiny, ensure your gold holdings are within the permissible limits. Maintain proper documentation for all gold purchases, gifts, and inheritances. Declare your gold holdings in your income tax returns if required.
If you have any other questions in your mind relating to stock market basics or need any clarification, please put your query into the comment box, We will try our best to clarify the same
Disclaimer: The information provided on MoneyWiseMind is for educational and informational purposes only. It is not intended to be financial advice, and you should not rely on it as such. Before making any financial decisions, you should consult a licensed financial advisor.
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