Before buying gold know your job otherwise it can be a big loss

 Before buying gold, know your job, otherwise it can be a big loss

                        

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The last few days have seen huge ups and downs. If you are planning to buy gold then you have to wait a while.

New Delhi: Investment in gold is growing rapidly during the Corona virus. At the same time, gold and silver prices have risen sharply. Prices of both the metals reached record highs. However, the last few days have seen huge ups and downs. If you are planning to buy gold then you have to wait a while. It is also important to know some rules before buying.

However, in the last three weeks, gold prices have fallen by nearly Rs 1,000. At present, gold is available at Rs 50,500 per gram and silver at Rs 60,536 per kg. According to market insiders, prices of these metals may fall further in the next few days. Most people prefer to buy it as their own savings. But as well as buying gold, it requires knowledge of tax rules. You have to pay tax on buying gold. But very few people know that even selling has to be taxed.

How does the tax feel?

People have reduced buying gold in cash since the increase in digital transactions. Gold can also be purchased digitally. This means you can pay for gold with debit cards, credit cards and internet banking. But after GST is implemented, consumers have to pay 3 per cent tax on buying gold. This also seems to be on the tax making charge.

Tax will be levied on sale

Gold can also be taxed after it is bought and sold. However it depends on how long you can keep the gold with you. However some people invest in it for long term and some for short term. If held for short term, it will be subject to short term capital gains tax and if it is kept for long term, it will be taxed at the time of sale on the basis of long term capital gains.

Short Term Capital Gains (STCG)

If you can buy jewelery and sell it within 36 months i.e. 3 years, you will have to pay short term capital gains tax on your profits. Because the benefits of investing in gold will be added to your income. Then the tax has to be paid according to what comes in the tax-slab.

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Long Term Capital Gains (STCG)

If you buy gold and keep it for more than three years, you will have to pay capital gains on the profit. Long-term capital gains were seen at 20.6 per cent after the indexation was applied to the purchase price of gold till the financial year 2017-18. Gains will be taxed at 20.8 per cent from fiscal 2018-19.