5 Things You Must Know About Taxes Levied on Gold
Buying gold is every Indian’s dream. With Augmont, you can turn this dream into reality. Augmont also offers Systematic Investment Plan (SIP) options which allow you to inculcate a savings habit and buy gold little by little.
But, with every purchase you make you are bound to pay taxes. Tax woes can be haunting. Filing returns and paying taxes can be pretty tedious. We understand the test of patience it can be.
Here’s a little piece of information you should know on the taxes levied on the purchase of gold/silver:
- All the prices quoted on the application are exclusive of Goods and Services Tax (GST) or any other tax.
- The GST levied on gold is 3%, with effect from 1st July, 2018.
- If you make a purchase with us and decide to show it in your books of accounts, then the Profit you make on its sale after 36 months, (i.e. 3 years) will be treated as Long-term Capital Gain. In case you make a loss, it will be treated as Long-term Capital Loss.
- You can also treat your purchase as a traded item. This will be shown under Stock in Trade and any incurred profit/loss will be treated as Business Income.
- All the above mentioned treatments are according to the provisions of the Income Tax Act.
We hope we have cleared all your doubts. If you have any more queries, Augmont offers chat support as well as online support on firstname.lastname@example.org. So, what are you waiting for? Download the app and start investing in gold now!