Gold Tax Rule: In India, gold is bought not only as an investment or jewelry but also as a tradition. Most of the gold is bought in India. There is a tax on selling the gold kept at home. Let us know what are the income tax rules in this regard.
Gold Tax Rule: When it comes to gold, we know how important a role it has played in our culture and traditions for centuries. At the same time, due to the continuous increase in its prices over the last few years, people also like to invest in it. The reason for this is that investing in gold gives reliable returns over time. Whenever you sell gold, tax has to be paid on it as per the rules. These rules have also been changed some time ago. In case of tax evasion, you can get caught in the clutches of the Income Tax Department at any time. In such a situation, it is very important to know how much tax will have to be paid on selling gold.
According to the Income Tax law, a married woman can keep a maximum of 500 grams of gold at home. Apart from this, an unmarried woman can keep 250 grams of gold. Whereas a male member can keep only 100 grams of gold. Whether he is married or unmarried. You should have proof of where you bought the gold from, who gifted it. If more gold than this is found in your house, then the Income Tax Department can take action against you.
Tax is levied on the sale of any kind of gold
In the July budget of 2023, changes will be made in the rules related to income tax on selling gold. Be it physical gold, paper gold or digital gold, tax has to be paid on the sale of every kind of gold. Whenever you sell gold, tax has to be paid on it in two ways. This includes Short Term Capital Gains (STCG) and Long Term Capital Gains (LTCG).
How much tax will be levied on selling physical gold
According to the news published in msn.com, if you want to sell physical gold like gold biscuits, jewellery, coins, then both LCG and STCG tax will have to be paid on it. If you sell gold within two years of buying it, you will have to pay 20 percent tax on STCG. 4 percent cess is levied separately on this. According to this, a total of 20.8 percent tax has to be paid for two years. If you sell gold after 2 years of buying it, 12.5 percent LTCG has to be paid. There is also a discount on this, which has been fixed at Rs 1.25 lakh. Overall, tax is levied on the profit made from selling gold.
