Purchased gold during Dhanteras, Diwali puja done? Want to keep in bank locker? Rules, limits for keeping at home here

Precious metals such as gold and metal have traditionally been the choice of big purchase made by households during the Dhanteras and Diwali festivities, as they are regarded as auspicious days for prosperity and new beginnings.

However, beyond their festive significance, gold and silver attract investors looking to diversify portfolios, preserve wealth and hedge against economic uncertainty.

So, if you are among those who purchased or invested in gold coins, jewellery or biscuits this Dhanteras or Diwali 2026, here's all you need to know about how much of the precious metal you can keep at home legally, if there's a penalty for exceeding limits, rules about declaration and storage, if any, investments, what the tax requirement is, and more.

There is no particular law imposing a legal limit on the amount of gold an individual can hold, however, you should be able to justify the source of your assets, especially for tax purposes. Thus, if you hold gold over the below-specified levels, income tax authorities can demand to check the documentation and proof of income.

Now, there is a limit if you have purchased and are travelling with gold from abroad, and in case of raids, authorities can request proof of purchase above certain worth, as mentioned below:

— Men (married and unmarried) can hold 100 grams of gold.

— Unmarried women are allowed to hold 250 grams of gold.

— Married women keep 500 grams of gold.

Notably, these limits are a guideline for tax officials during raids to help them differentiate between legitimate and illegitimate gold holdings and not a legal restriction for how much gold you can individually hold.

There is no need to declare gold stored at home unless it exceeds the prescribed limits. Gold can be stored in various forms, including jewellery, coins, and bars. You will, however, need proper documentation for tax purposes and to show in case of assessment by authorities.

As per the Central Board of Direct Taxes (CBDT), gold purchases made with revealed income sources, inherited from family, and within a reasonable amount, as specified above, are not to be taxed.

Please note however that significant gold holdings without valid proof can be considered as undeclared income by authorities and subjected to tax penalties. Such gold may also be confiscated during an income tax raid or investigation.

While there is no tax on storing gold within the prescribed limits at home in India, tax does come in at the time of purchase (3% GST) or sale (capital gains tax). Penalties may apply if you are unable to provide proper documentation for gold exceeding limits at home.

In terms of tax during sale: If you sell your gold within three years of purchase, short-term capital gain tax (STCG tax) will be applied; and if you sell it after three years, long-term capital gain tax (LTCG tax) will be applicable.

When it comes to digital gold, Sovereign Gold Bonds, gold exchange-traded funds (ETFs) and mutual funds, the rules differ.

• There is no limit for buying digital gold, but there are GST and other small fees applied during purchase. You can buy up to ₹2 lakh worth of digital gold in a single day. There is also no STCG tax, but the LTCG tax is applicable at 20%.

• For SGBs, citizens are allowed to invest in plans equivalent to up to 4 kg per year. Interest generated on SGBs is included in your taxable income, but becomes tax-free after eight years. There is no GST on these purchases.
• For Gold ETFs and Mutual Funds, you have to pay LTCG tax at the time of sale.

Most Indians hold gold in the form of jewellery and coins, which can be kept at home or in a bank locker. A secure option, bank lockers offer limited coverage for assets stored.

The average rent of a bank locker, as per Reserve Bank of India (RBI) rules, is ₹5,000, and in case of loss of asset, you are covered for up to 100 times the locker rent, i.e. ₹5,00,000. This is less than the present value of four tola gold and thus many may choose to keep the asset at home, especially in jewellery form.

Overall, customers opting for bank lockers must take into account the actionable compensation they can claim and other liabilities.

Jocelyn Fernandes is a journalist and editor with nearly 13 years of experience covering the business, corporate, economy and markets beats in news.<br> As chief content producer for around three years at Livemint (Hindustan Times), Jocelyn publishes breaking stories, explainers, features and live blogs on a range of business and economy topics, including the Budget, corporate developments, stock markets, income tax, money and personal finance, cryptocurrency, government policy, impact of US tariffs, international developments and more.<br> Jocelyn's writing philosophy is focused on delivering news in an accurate and accessible format for readers. She thus focuses her news coverage on explainers and FAQs in order to breakdown business, corporate, economic, and policy topics that are of importance to everyday readers.<br> She holds a Bachelors in Mass Media (BMM) and Post Graduate Diploma (PGD) in Journalism and Communication and has previously written for online business and markets news site Moneycontrol (Network18), Business-to-business (B2B) trade publications — the industry magazines Power Today and Solar Today (ASAPP Media), and the national news agency United News of India (UNI).<br> Outside of work, Jocelyn keeps up-to-date with local and international news, enjoys reading fiction books, novels and short stories, and enjoys movies, travelling and art. <br> She can be found on X and LinkedIn, and reached by email: <a href="jocelyn.fernandes@htdigital.in">jocelyn.fernandes@htdigital.in</a> <br> X/ Twitter handle: <a href="https://x.com/scribeJocelyn">@scribeJocelyn</a> <br> LinkedIn: <a href="https://in.linkedin.com/in/jocelyn-fernandes-journalist">LinkedIn</a>

Catch all the Instant Personal Loan, Business Loan, Business News, Money news, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

More

✕

Wait for it…

Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.