Gold is currently breaking records. Gold benchmark prices in both domestic spots and futures market reached above 84 thousand on Thursday. In the global market, gold is desperate to break the level of $ 2,900 an ounce. According to experts, there is an outlook bullish for gold in view of the increasing uncertainty in the global economy regarding trade war. At the same time, the domestic equity market is continuously eating hiccups after September, due to which gold has become a very attractive asset class for investors. But before investing in gold, it must be alert about the tax rules imposed on different forms so that your return is not affected. As far as the budget was concerned, there was no change in the tax rules related to the sale of gold in the General Budget (Budget 2025) presented on the first date of this month.
Now Gold Of apart,apart Form In Investment But Tax Regulations To Know Are,
Physical Gold (Physical gold)
Buying Of Time
At the time of purchasing gold jewelery, 3 % GST (GST) is to be repaid above the price of gold while there is a provision of 5 % GST on making charge. Understand this in this way – Suppose you bought a jewelery worth 1 lakh rupees gold, on which the making charge is 10 percent i.e. 10 thousand rupees. In this case, you will have to pay 3 percent GST i.e. 3 thousand rupees at the price of 1 lakh rupees, while 5 % GST i.e. 500 rupees on a making charge of Rs 10 thousand. In this way you will have to pay a total of Rs 1,10,500 in this case.
Gold Jewelery of Procurement But Tax of Calculation,
Gold base price – Rs 1,00,000 (6 % import duty mixed)
3 % GST at Gold Base Price – Rs 3,000
Price (Base Price +GST): Rs 1,0,3000
Making charge 10 % (at base price) – Rs 10,000
Price (Base Price +GST +Making Charge): Rs 1,13,000
5 % GST on making charge: 500 rupees
Total Price (Base Price +GST +Making Charge +GST on Making Charge): 1,13,500 rupees
Physical Gold Sell Of Time
When you sell gold i.e. jewelery (jewelry), coins, bar (biscuit) purchased in physical form, then tax holding is based on the period (from the day of the day of purchase to the day of selling).
According to the changes made in Budget 2024, if you sell 24 months after purchasing physical gold on 23 July 2024 or after the completion of 24 months, then the earnings i.e. capital gains will be considered as short-term capital gains (STCG) Gross total will be added to income and you have to pay tax on it according to your tax slab. But if you sell after the completion of 24 months, then 12.5 per cent of Long-Term Capital Gain (LTCG) tax will have to be paid on the capital gains.
Whereas according to the rules before July 23, 2024, if you had sold the earnings before the completion of 36 months after purchasing physical gold, then the capital gains were added to your gross total income by considering the capital gains as short-term capital gains (STCG). And you should pay tax on that amount according to your tax slab FallsBut if you sell it after completion of 36 months, then the capital gains would have to pay 20 % (20.8 per cent) of long-term capital gains (LTCG) tax on capital gains. Under the indexation, the purchase price was increased according to inflation, causing a decrease in capital gains and reduced tax liability.
Digital Gold (Digital Gold)
Like physical gold, you also have to pay 3 % GST on the purchase of digital gold. The current rules of tax on the capital gains from its sale are like physical gold.
Gold ETF (Gold ETF)
According to the new rules, if you sell the gold ETF purchased on 1 April 2025 or after 12 months before the completion of 12 months, then the earnings i.e. capital gains will be considered as short-term capital gains (STCG), which your gross total income Will be added and you have to pay tax according to your tax slab. But if you sell after completion of 12 months, then 12.5 % long-term capital gains (LTCG) tax will have to be paid on the capital gains.
On the lines of date fund before 1 April 2023, there was a provision of long-term capital gains tax (LTCG) on the lines of date funds on gold ETF and gold mutual funds, 20 % (20.8 %) Sells after completion.
Gold Mutual Fund (Gold Mutual Fund)
But according to the new rules, if you sell the gold mutual fund purchased before the completion of 24 months, then the earnings i.e. capital gains will be considered as short-term capital gains (STCG), which your gross Total income will be added and you have to pay tax according to your tax slab. But if you sell after the completion of 24 months, then 12.5 per cent of Long-Term Capital Gain (LTCG) tax will have to be paid on the capital gains.
On the lines of date fund before 1 April 2023, there was a provision of long-term capital gains tax (LTCG) on the lines of date funds on the gold mutual funds, with the advantage of indexation, there was a provision of long-term capital gains tax (LTCG), provided you have completed 36 months of purchase. Sells later.
Sovereign Gold Bond (Sovereign Gold Bond)
No series of Sovereign Gold Bond has been launched after February 2024 and the government is looking in a mood not to release it, so you can only invest in this bond through stock exchange. Now we know the tax rules related to this gold bond.
Maturity Of after Redemption
Tax rules are different on the very popular choice of investment in paper gold ie Sovereign Gold Bond. According to the rules, if you hold the Sovereign Gold Bond for its maturity i.e. 8 years, then you will not have to pay any tax at the time of redemption. If you also buy this bond in the secondary market and hold it till maturity, then you will not have to pay any tax on the amount of maturity after redemption.
Premature Redemption
According to the rules before 23 July 2024, if you redeem it before the maturity period, you would have to pay tax like physical gold. Meaning if you sell the sovereign gold bond before 36 months, then the earnings i.e. the capital gains as short-term capital gains (STCG), it would be added to your gross total income and you are taxed according to your tax slab Had to pay. But if you sell after 36 months, then 20 per cent (cess and 20.8 per cent) with the advantage of indexation on capital gains would have to pay long-term capital gains (LTCG) tax.
There is an option to redeem the sovereign gold bond after five years. But those bond holders who have taken this bond in demat form can also sell it on stock exchange anytime.
But according to the new rules, if you sell the Sovereign Gold Bond before or after the completion of 12 months, then the earnings i.e. the capital gains will be considered as a short-term capital gain (STCG). Which will be added to your gross total income and you have to pay tax according to your tax slab. But if you sell after completion of 12 months, then 12.5 % long-term capital gains (LTCG) tax will have to be paid on the capital gains.
Even in the secondary market, if you redeem this bond before maturity, then you will have to pay tax according to these rules.
Every financial year 2.5 per cent interest (coupon) is also available on Sovereign Gold Bond. But there is no tax exemption on this interest. Meaning this interest will be added to your gross income as income from other sources and you will have to pay tax on it according to the tax slab. One more thing – there is no provision of TDS on interest received in Sovereign Gold Bond.