How can you buy all the gold .. Do you have to pay tax even if you sell it? How much tax? Here are the details ..!

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Gold, mixed with the sentiments and tradition of the Indians, is at the forefront of their investment plans.

Because its market value is always growing. Will increase in the future. Above all it is a haven of protection against inflation.



And while we initially bought gold only as jewelry, we are now buying it digitally as well. We pay tax when we buy gold. That’s the thing to know. But we pay taxes when we sell it. How much is it? How to buy gold? That’s what we’re going to look at.

Also Read: Gold hits over one-week low as dollar gains ground

The price of gold will increase

One study found that 70% of Indians feel that owning gold gives them a sense of security. This is because they are making their investments in gold in the hope that the price of gold will increase in the future. We can often buy gold in four ways.

How to buy gold everything

The first is gold purchased as jewelry or coins, the second is investment in gold mutual funds, the third is digital gold, i.e. MCX gold, gold stocks, the fourth is gold bonds, all of which are issued by the government. All types of security, such as interest rates, are favorable to investors. It is also seen as an excellent investment as recommended by experts.

There is a tax when selling gold

We buy gold and pay taxes when we buy it, right? What if it is taxed at the time of sale? Of course yes. When you sell gold you are taxed and the tax rate depends on what type of gold you bought it from.

Tax when selling jewelry

When purchasing in the form of jewelry and currency, profits from it are taxed. Most people buy gold as jewelry or coins. When you sell gold in this form the taxation for it depends on how long you have kept it.

Short Term Capital Tax & Long Term Capital Tax

If the gold is sold within three years from the date of purchase, it is considered short-term capital. Income earned on short-term capital is calculated and taxed based on the amount of income tax applicable to you. Gold sold after three years is taxed at 20% as long-term capital gains.

What is the tax on mutual funds?

If the same is invested in gold funds, the profits made through gold funds will be taxed. Profits from gold fund investments are calculated and taxed in the same way as profits from jewelry and currency.

Tax on digital gold
Digital Gold is a great way to buy and invest in gold. There are a number of things to look for when selling physical gold. There is also the concern of protecting the tumor. But there is no such thing as digital gold. Theft is unlikely to go away. This is why they want to buy more.

Profits from gold are taxable
In addition, many banks, mobile wallets and brokerage firms are currently selling gold through their apps. In particular, it has partnered with leading gold selling companies such as MMTC-PAMP and SafeGold. Profits from digital gold thus bought and sold are also taxed.

Gold bonds
Gold bonds issued by the Reserve Bank are government securities specified in grams of gold. They are an alternative to keeping gold as jewelry or currency. These bonds are issued by the Reserve Bank on behalf of the Government of India. From the fifth year to the eighth year you can choose the maturity period to suit you.

Tax on profits made through gold bond
If you invest in a gold bond program and wait until 8 years of maturity, capital taxes will not be levied. If it does not last for eight years- you can sell your gold bond on the exchange (or) you can cash your gold bond after at least five years. But it is worth noting that both have capital taxes.

 

 

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