What is the exemption limit of keeping silver ?

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A K Agarwal

Self

21 Points Posted on 26 November 2016

1. As per IT rules keeping of gold in the family is expempted upto 500 gms per married lady, 250 gms per unmarried lady, and 100 gms per male member . . question is whether this 500 /250 /100 gm needs to be in the form of jwellery, or it can be in the forms of gold bars /coins ? . . . . 2. NOW another important question pls :: What is the exemption limit of keeping SILVER per person or per family ?? This information does not seem to be available readily . . . Pls help Thanks

Replies (2)

Quick Summary

Gold limits of 500g 250g 100g apply mainly to jewellery for search tolerance. No specific exemption limit is prescribed for holding silver. Taxability depends on source, disclosure, and wealth or income records.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121546 Points Posted on 29 November 2016

As such no limit found, but may very individually as per wealth tax return filed.

Aashok Kumar Sharma

Finance/Compliance Consultant

77925 Points Posted on 06 November 2026

Clarifying a common misconception:

• The 500 g / 250 g / 100 g figures come from CBDT Instruction 1916 dated 11 May 1994. It is a guideline for officers not to seize gold jewellery up to these limits during a search. It is not a legal limit on how much you may own, and it is not an exemption from tax.

• It covers jewellery and ornaments only, not gold bars or coins. CBDT's press release of 1 December 2016 confirmed that no tax arises on jewellery from explained sources, inherited jewellery, or jewellery bought from disclosed income, without any limit.

• Silver: there is no prescribed limit. Any quantity is fine if the source is explained (purchase bills, inheritance or family settlement documents, wedding gifts recorded with dates).

• Unexplained jewellery or bullion found in a search is taxed at 60% plus surcharge and cess (Sec 115BBE).

• Best practice: keep purchase invoices, and disclose in Schedule AL if your total income exceeds Rs 1 crore (ITR-2/3, threshold from AY 2025-26).