Do you have to pay Tax on the Profit made by Selling Gold, Here are the Rules

Gold has been counted among the best investment options. However, people are less aware of how much tax has to be paid while selling gold.

Gold has great importance in India. It has not only economic importance but also cultural and religious significance. It has been counted among the best investment options. Indians like to invest in gold. But if you want to invest in gold, then you should be aware of the tax on the profit made by selling gold. If you do not pay tax, then it will be considered as tax evasion. Today we are telling you how much income tax you will have to pay while selling gold.

Physical gold

• If you sell physical gold within 3 years, then it will be considered as short-term capital gains. The profit from selling it will be taxed according to your income tax slab.
• If physical gold is sold after 3 years, it will be considered as log term capital gains. There will be a 20% tax on this.

Gold Mutual Fund or Gold ETF

• There are no separate rules regarding Gold ETFs and Gold Mutual Funds.
• Taxes are levied on physical gains like physical gold.

Sovereign Gold Bond

• Bond's maturity period is 8 years old. Investors can opt out after 5 years.
• If you exit before the redemption window (5 years after opening) or through the secondary market, then capital gains tax will be levied on physical gold or gold mutual funds or gold ETFs.
• Also note that gold bonds pay interest at the rate of 2.50%. Interest is fully taxable as per your tax slab.Read More: Govt to ramp up domestic production and import the drug used to treat Black Fungus: Mansukh Mandaviya

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