Gold prices rise 7.60% this month. Which income tax rules apply and how? - Hindustan Times
close_game
close_game

Gold prices rise 7.60% this month. Which income tax rules apply and how?

Apr 22, 2024 04:41 PM IST

In YTD time, the gold rate today is higher by ₹9,500 per 10 gm from its 2023 close price of nearly ₹63,200 per 10 gm.

With the rise in gold prices because of the ongoing geo-political crisis in the world, it has become important to know how the income tax rule applies to income booked from gold investments.

In one year, the gold prices have surged by around <span class='webrupee'>₹</span>13,000 per 10 gm, which is 22 percent higher than its price of around <span class='webrupee'>₹</span>59,500 per 10 gm a year ago.
In one year, the gold prices have surged by around 13,000 per 10 gm, which is 22 percent higher than its price of around 59,500 per 10 gm a year ago.

Gold price in the domestic market has risen to 7.60 percent in April 2024. In YTD time, the gold rate today is higher by 9,500 per 10 gm from its 2023 close price of nearly 63,200 per 10 gm. Hence, it has appreciated to the tune of 15 percent in YTD time. Also, in one year, the gold prices have surged by around 13,000 per 10 gm, which is 22 percent higher than its price of around 59,500 per 10 gm a year ago.

Now catch your favourite game on Crickit. Anytime Anywhere. Find out how

Read more: Tesla cars may have X integration ‘soon’, Elon Musk says: What this means?

Income tab rule for physical gold

A distinct set of income tax regulations will apply to one's income from gold if the investment is made in physical gold. One must consider the investment time to determine their gold income. The income tax will be computed using the short-term capital gain rules if a person books a profit in gold after keeping it for less than three years; if they hold it for three years or longer, the income tax will be computed under the long-term capital gain rules.

Read more: Mamaearth's Ghazal Alagh feels women should use these 5 power phrases more: Watch

Short-term gold gains are added to an investor's net income, and income tax is calculated according to the applicable income tax slab that is in line with the investor's net annual income. For long-term capital gains, income from gold is taxed at 20 per cent plus cess, which is 4 percent these days. Also, long-term capital gain on physical gold gets indexation benefits.

Income tax rule on SGB, digital gold

Read more: Mark Zuckerberg thinks this one thing is more important than data in AI

Mumbai-brd tax and investment expert Balwant Jain said as per Mint, "Redemption in SGB opens after five years of investment, and money redeemed from SGB is 100 per cent tax exempt. However, if you sell your position in exchange, then the short-term capital gain or long-term capital gain will be applied depending upon the period of holding.” Short-term capital gain will be applied if the investor has held SGB for one year or less.

Elevate your career with VIT’s MBA programme that has been designed by its acclaimed faculty & stands out as a beacon for working professionals. Explore now!

See more

Get latest updates on Petrol Price along with Gold Rate , Today Weather and Budget 2024 at Hindustan Times.

SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Saturday, June 15, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On