NewDelhi: Indian government on Wednesday (13 May 2026) raised import tariffs on gold and silver to 15 percent from 6 percent. The government has made this move as part of its efforts to curb overseas purchases of the metals and ease pressure on the country’s foreign exchange reserves.
Prime Minister Narendra Modi recently appealed citizens to practice austerity amidst the ongoing global instability. Urging for financial discipline, the PM said that the people of the nation dependence on imported goods, gold purchases, and fuel consumption. Emphasizing that, foreign goods places pressure on India’s forex reserves, Modi has also called for exercising restrains when it comes to purchasing gold.
“Gold is not necessary at this time,” the PM addressing a rally said recently. Among other austerity measures, the PM has called for moderation in edible oil consumption, reduction in chemical fertiliser usage, restrict overseas travel and destination weddings.
As per Central Board of Direct Taxes (CBDT) 1994 circular, there is an authorised threshold for keeping Gold Jewellery And Ornaments. For such authorized threshold for keeping gold individually, no proof of investment is required.
The CBDT circular has prescribed limits for the quantity of jewellery and ornaments that people can possess or keep as individuals
Married women are allowed to keep or possess up to 500 grams of gold
Unmarried women are allowed to keep or possess up to 250 grams of gold
Men are allowed to keep or possess up to 100 grams
If you purchase gold worth Rs 2 lakh or above, you will have to furnish your PAN card details and this is mandatory under Section 114B of the Income Tax Rules
You can buy gold up to Rs 2 lakh only with cash, an amount exceeding this has to be paid through card or cheque along with PAN card details
Under section 269ST of the Income Tax Act, you cannot do cash transactions exceeding Rs 2 lakh in a day for purchasing gold.
Purchasing gold for amount more Rs 2 lakh in cash in a single day, is subject to penalty equivalent to the cash transaction amount under Section 271D of the Income Tax Act.
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