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Since the last budget, gold and silver prices have surged dramatically. Therefore, as Budget 2026 approaches, people are particularly interested in knowing what steps the government will take regarding these safe-haven investment options. As the budget draws closer, India's fascination with gold is once again a topic of discussion. Questions are being raised: will Finance Minister Nirmala Sitharaman make any major announcements regarding gold on Sunday, February 1st?

Will there be a new limit on the amount of gold that can be held at home? Or will there be a new rule for declaring gold in Income Tax Returns (ITR)? We will discuss these questions later. First, let's understand the impact of the surge in gold and silver prices on investors.

Gold and Silver Performance
Gold and silver prices have surpassed all previous estimates. In India, 24-karat gold has reached approximately ₹1.67 lakh per 10 grams, while silver has touched ₹3.47 lakh per kilogram. These are the MCX spot rates. While there was a slight dip in prices on Friday, experts believe that further increases are likely, with occasional minor corrections.

Compared to the last budget, on the day of Budget 2025, gold in Delhi was priced at ₹84,000 per 10 grams and silver at approximately ₹99,600 per kilogram. This means that in one year, gold has appreciated by nearly 100% and silver by approximately 250%.

How much gold do Indian households possess?
It is estimated that Indian households possess more than 34,600 tons of gold, which is more than the total gold held by all the world's central banks combined. As of December 2025, central banks held a total of 32,140 tons of gold. The RBI has also been consistently buying gold in recent years and now holds a record 880.2 tons. The increase in gold prices has multiplied the total value of gold held in Indian households. According to some estimates, this value has reached approximately $3.8 trillion.

How much gold is legal to keep at home? According to income tax laws, there is no limit on holding gold if it has been purchased with legitimate and declared income or inherited. The government has also clarified that during searches, gold ornaments up to 500 grams for married women, 250 grams for unmarried women, and 100 grams for men will not be seized. More gold may also not be seized if necessary, considering family traditions. This also excludes 'Stridhan' (gifts received by a woman at the time of marriage and thereafter).

Can the rules change?
Tax experts believe that a major change in the limit on gold held at home is unlikely. However, there may be changes in reporting or disclosure rules. Information about gold may have to be provided more clearly in the ITR (Income Tax Return).

Tax rules on gold
There is no tax on inherited gold. However, providing a PAN card is mandatory for purchasing gold worth more than ₹2 lakh. This limit may be increased. A 3% GST is levied on the purchase of gold, and an additional 5% GST is levied on the making charges of jewelry. If gold is sold after two years, a 12.5% LTCG (Long-Term Capital Gains) tax is applicable. If sold before two years, a 20% Short-Term Capital Gains tax is levied. Gold ETFs are also taxed based on the holding period. There are high expectations from Budget 2026 regarding gold. It remains to be seen how the government will help Indian families build wealth through gold.

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