Gold’s enduring appeal in India stems from its dual role as heritage asset and inflation beater. Billions flow into it annually, but tax oversights can derail returns. Here’s a roadmap to compliant, profitable gold dealings.
Entry tax: 3% GST on pure gold value for all formats. Jewelry’s fabrication markup? 5% GST extra, often 10-25% of price—shop smart to minimize.
Exit strategy hinges on tenure. Sub-36 months sales? STCG, aggregated into gross income, slab-taxed from 5% to 30%+.
Over three years unlocks LTCG: 20% flat with indexation benefit, where Cost Inflation Index (CII) boosts original cost, curbing dutiable profit—ideal for patient investors.
Estate gold skips inheritance tax; sales use decedent’s acquisition metrics for period calculation, blending family history with fiscal smarts.
Possession caps deter evasion claims: 500g married women, 250g unmarried women, 100g men. Excess? Substantiate with bills, wills, or ITRs.
E-gold echoes tradition—3% GST purchase, tenure-based CGT sale. Diversify into SGBs for 2.5% interest and maturity tax waivers.
Gold’s safety net strengthens with tax savvy. Prioritize rules over impulse to harvest full rewards from this yellow metal mainstay.