Income Tax Tips: How much tax will be levied on the income earned from gold, know the rules of income tax...
There is a continuous rise in the rate of gold. There is a rise in the price of gold in different cities. In Delhi, the price of 22 and 24-carat gold has reached close to 70 thousand rupees per ten grams. Now those who have gold or those who have invested in it, have got a lot of fun with this rise. At the same time, those who were thinking of buying gold are currently in shock. Still, when it comes to investment, most people invest in gold. But do you know how much tax is levied on the income from gold, if not, then let us tell you…
There are many options for investment.
In today's era, there are many ways to invest in gold. Like physical or gold bonds. We have physical gold in the form of gold. Like jewelry lying in the house or gold brick or coin. Some people buy gold keep it in a bank locker and sell it when the price increases. To invest in gold, some people also invest in Gold ETF. Some people also buy virtual gold. In such a situation, not everyone knows how much tax has to be paid for selling gold.
This much tax will be levied on the sale.
If gold is sold within 3 years, then the profit from this sale is taxed according to the income tax slab. If gold is sold after 3 years, then a 20.8% tax has to be paid on it. Similarly, tax has to be paid on Gold ETF and Gold Mutual Funds for less than 3 years according to the income tax slab. 20.8% tax will have to be paid on selling Gold Mutual Fund or Gold ETF after 3 years.
This is the math
Now if you are wondering why tax is being collected on your gold and from you, then let us tell you the math. If you have bought gold worth Rs 5 lakh and after a few years it becomes Rs 8 lakh, then you have to pay tax not on 8 lakh but on Rs 3 lakh. That is, tax has to be paid only on the profit made.
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