Gold is the most favourite thing among the Indian households and world-wide. People purchase gold on various occasions such as marriage, festivals, functions etc. Gold can be in the form of bars, coins, ornaments etc. Gold is also a popular mode of investment these days due to higher stock market volatility. ( investors generally buy gold as a way of diversifying risk ). The Gold market is also subject to speculation and volatility like other markets.
This document covers
Gold can be invested in multiple forms and below are the some of the forms.
Note: The Income tax officer might decide to exclude a larger quantity of jeweller or ornaments from seizure with regard to the status of the family and the customs and practices of the community to which the family belongs
Gold and its various forms are deemed to be a capital asset and the sale of these would attract capital gains tax.
The taxability of gold received under gift or inheritance or will is as follows.
Note: Gold received at the time of marriage is fully exempted under income tax whether from relatives, friends or any other persons
Taxpayer having capital gains under short term cannot save taxes by reinvesting but if the taxpayer is having long term capital gain on sale of gold, then he can reinvest and save the taxes as follows.
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