Need information about tax for gold purchased

1139 views 4 replies

I have some money saved over the last couple of years and am looking to invest in gold. Not ETFs at the moment or Egold, rather looking at physical gold. What i need to understand are the tax implications of buying gold coins in various denominations like 5 gms, 10 gms or even 100 gms. How am I going to be taxed if buy this gold and dont sell it for the next 3-4 years.

Also would you suggest buying ETFs or E-gold. I understand that both these attract long term capital gains of at least 10% even if held for 3 years or more before selling.

Seeking some expert advice here!

Replies (4)

gold whether in physical form or ETF are capital assets as defined u/s 2(14) of the act and hence buying the gold does not attract any taxes (obviously) but selling it within 36 months attracts STCG and after 36 months attracts LTCG.

 

Personal suggestion would be buy gold in various denominations.

thanks for the prompt reply - what about Wealth tax while this gold is being held? Does gold being a physical asset attract wealth tax and how does wealth tax work?

yea bullion forms a part of wealth tax.. but thr are en number of criterias for exemption u/s 5 of the welath tax act which can not and advisable to not to discuss here

Hi, 

in last FY i buy Physical gold of amount 225000 and then sell it in 3 month at price 200000. 

So i sell it in loss of Rs25000 can I show this in my short term loss and add it in Loss cary forward ??

if so under which section?

please help.


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