Income tax is also payable when buying and selling gold

Investing or buying gold is the first choice of Indians. Our country has a tendency to buy gold mostly on special occasions. There are 4 ways to buy gold in India. There are physical gold, gold mutual funds or gold, digital gold and sovereign gold bonds. When you sell gold, it is taxed and the tax rate is the same as the date it was bought. If you do not pay taxes, it will be considered income tax evasion. Find out how much income tax you have to pay when selling gold.

Physical Gold
Physical gold includes jewelry and other gold items along with coins. If you sell gold in 3 years, it is considered a short term capital gain. You have to pay tax on the profit from this sale as per the income tax slab. If you sell gold after 3 years, it is considered a long term capital gain. He gets the benefit of indexation and has to pay 20 per cent tax.

Gold Mutual Fund or Gold ETF
Gold Mutual Funds or Gold ETFs invest your money in physical gold for the purpose of tracking the price of gold. Gold ETFs invest in exchange for gold mutual funds. Profits from gold ETFs and gold mutual funds are taxed in the same way as physical gold.

Digital Gold
Under Digital Gold, many banks, mobile, wallets and brokerage companies have entered into agreements with MMTC-PAMP or SafeGold to sell gold through their app. Benefits from digital gold are taxed in the same way as physical gold or gold mutual funds or gold ETFs.

Sovereign Gold Bond
The maturity period of the bond is 8 years. But investors get a chance to exit after 5 years. That means you can delete it after 5 years if you want to delete it. However, if you exit before the redemption window (5 years after opening) or through the secondary market, there is a capital gains tax on physical gold or gold mutual funds or gold ETFs. Gold bonds pay interest at a rate of 2.50% per annum. And this interest is taxable according to your tax slab.

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