Understanding the Tax Implications on Gold Investments with Srishti Gosavi

With gold prices on the rise, many investors are rejoicing in their potential gains. However, the taxation aspect of gold investments often goes unnoticed. Srishti Gosavi, a renowned finance influencer, sheds light on the tax treatment of various gold investments to ensure that investors are well-informed about their potential tax liabilities.

Tax Treatment for Different Gold Investments

Sovereign Gold Bonds (SGBs):

• Short-Term: If SGBs are sold within the first three years of purchase, they are taxed at your slab rate (e.g., 10%, 30%, etc.).
• Long-Term: If sold after three years, they are subject to a 20% long-term capital gains tax.
• Maturity: The best part about SGBs is that if you hold them until maturity (8 years), they are not taxed at all.

Gold Exchange-Traded Funds (ETFs):

Earnings from gold ETFs are taxed according to your slab rate, regardless of when you sell them. There are 17 gold ETF schemes available in the market.

Physical Gold (Coins/Biscuits):

The tax treatment for physical gold is similar to that of gold jewellery. If sold three years after purchase, they are taxed at a long-term capital gains rate of 20% plus an 8% cess.

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While gold investments can be a valuable addition to your portfolio, it's essential to understand the tax implications associated with them. Srishti Gosavi's insights into the tax treatment of SGBs, gold ETFs, and physical gold provide investors with crucial information to make informed decisions. By being aware of these tax rules, you can optimize your gold investments and avoid any unexpected tax liabilities.