As homes across India light up for Dhanteras and Diwali, gifting and buying gold and silver remain cherished traditions symbolising wealth and prosperity. But as bullion prices soar to record highs, tax experts are reminding buyers and recipients alike to understand the Income Tax Act’s rules on gold and silver ownership — so that the sparkle doesn’t come with a surprise tax bill. Advertisement

According to the Income Tax Act, 1961, there is no legal cap on the amount of gold or silver an individual can hold at home. However, the tax implications depend on how these assets are acquired — through purchase, inheritance, or gifts — and, in the case of gifts, the relationship between the giver and the recipient.

Gold gifting

Under Section 56(2)(x) of the Income Tax Act, gifts — including g

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