**How Much Gold Can Indians Own? Know the Law**
*By Dwaipayan Roy | Oct 13, 2025, 05:48 PM*

With Dhanteras and Diwali approaching, many families are considering their gold purchases. Understanding the legal aspects of gold ownership in India is essential before making any investment.

### Historical Background
The Gold Control Act of 1968 once imposed restrictions on gold ownership in India. However, this law was repealed in 1990. Since then, there are no legal limits on how much gold a person can own, provided they can prove the legitimate source of the gold through invoices or inheritance documents.

### Limits on Seizing Gold Jewelry During Raids
The Central Board of Direct Taxes (CBDT) has issued specific guidelines for income tax officials during raids on gold holdings. According to a circular dated May 11, 1994, there are limits on the quantity of gold jewelry that cannot be seized during such raids. These limits are:

– 500 grams for married women
– 250 grams for unmarried women
– 100 grams per male member of the family, regardless of marital status

These measures are intended to protect genuine personal holdings from confiscation.

### Tax Implications on Gold
The tax treatment of gold depends on its form and the holding period:

– Physical gold, Gold Exchange-Traded Funds (ETFs), and other digital gold products are considered capital assets.
– If sold within 12 months of purchase, the gains are treated as short-term capital gains (STCG) and taxed according to the individual’s income tax slab (ranging from 5% to 30%).
– If held for more than 12 months, the gains qualify for long-term capital gains (LTCG) tax at a flat rate of 20% under the current tax regime, without the benefit of indexation.

### Conclusion
There is no restriction on the amount of gold an individual can own in India today. However, it is crucial to maintain proper documentation to prove the source of gold and to be aware of tax liabilities when selling gold assets. As the festive season nears, investors should make informed decisions regarding their gold purchases to stay compliant with the law.
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