There has been a tremendous rise in the prices of gold and silver since the last budget. In such a situation, regarding Budget 2026, people especially want to know what steps the government takes regarding these safe investment options. As the budget is approaching, India’s love for gold is once again in the news. Questions are being raised whether Finance Minister Nirmala Sitharaman will make any big announcement regarding gold on Sunday, February 1?
Will there be any new limit on the amount of gold kept at home? Or will there be a new rule for giving information about gold in Income Tax Return (ITR)? We will talk about these questions later. First let us understand what impact the rise in gold and silver prices has had on investors.
gold and silver display
The prices of gold and silver have exceeded all estimates so far. In India, 24 carat gold has reached around Rs 1.67 lakh per 10 grams, while the price of silver has gone up to Rs 3.47 lakh per kg. These are the spot rates of MCX. There was a slight decline in prices on Friday, but experts believe that there may be a rise again in the future, there will be slight correction in between.
If we compare with the previous budget, then on the day of Budget 2025, gold in Delhi was Rs 84 thousand per 10 grams and silver was around Rs 99,600 per kg. That means, in one year, gold has increased by almost 100% and silver by almost 250%.
How much gold do Indian families have?
It is estimated that Indian households have more than 34,600 tonnes of gold, which is more than the total gold of all the central banks of the world. By December 2025, central banks had a total of 32,140 tonnes of gold. RBI has also been buying gold continuously in recent years and now has a record 880.2 tonnes of gold. Due to increase in the price of gold, the total value of gold kept in Indian homes has increased manifold. According to some estimates, this value has reached around 3.8 trillion dollars.
How much gold is it legal to keep at home?
According to Income Tax law, if gold is purchased from legitimate and declared income or inheritance, there is no limit on its retention. The government has also made it clear that during the search, jewelery up to 500 grams of married women, 250 grams of unmarried women and 100 grams of men will not be confiscated. If necessary, keeping in mind the family traditions, more gold than this cannot be confiscated. The stridhan received over the years after marriage is also not included in this.
Can the rules be changed?
Tax experts believe that there is little possibility of any major change in the limit of gold kept at home. However, the rules related to reporting or giving information may change. It is possible that information about gold will have to be given more clearly in the ITR.
gold tax rules
There is no tax on inherited gold. But if you buy gold worth more than Rs 2 lakh, it is necessary to provide PAN. This limit can be increased. 3% GST is levied on the purchase of gold, and an additional 5% GST has to be paid on making charges on jewellery. If gold is sold after two years, 12.5% LTCG tax is levied. If sold before two years, 20% short term capital gains tax has to be paid. Gold ETFs are also taxed according to the holding period. There are a lot of expectations regarding gold from Budget 2026. Now it remains to be seen how the government helps Indian families to create wealth through gold.
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