What are the changes in the taxation of Gold in India for instruments like Physical Gold, Gold ETF, Gold Mutual Funds or Sovereign Gold Bonds after Budget 2024?
In Budget 2024, there were lot of changes proposed on the Capital Gain Taxation for the investments and securities. For gold also, certain changes were proposed by the Finance Minister. Hence, let us understand the changes in the taxation of Gold in India post-Budget 2024 announcements.
If we wish to know more about Budget 2024-related articles then refer to the same –
In this article, I will concentrate only on the taxation of Gold.
Before we proceed further, understanding of what is long-term and short-term as per the new proposed tax rules is very much important. Because based on this concept itself the the taxation rules change.
The long-term means a 12-month holding period or 1 year. Below are securities that fall under this category.
Even though equity mutual funds are not listed in stock exchanges and traded like stocks and ETFs, they are still considered as listed securities for the purpose of taxation.
The long-term means a 24-month holding period or 2 years. Below are securities or assets that fall under this category.
These are certain instruments that neither qualify for listed nor unlisted. These assets are taxed as per the tax slab (irrespective of your holding period). They will be taxed as per your tax slab. Below are certain such products.
The changes mentioned are applicable for the future. If you have already sold an asset in the current financial year prior to July 23, 2024, and recorded STCG/LTCG, the previous tax rates will be in effect. The updated tax rates will be applicable to the sale of assets on or after July 23, 2024.
Let us now look into the below table of changes in taxation of gold in India post-budget 2024. You noticed that due to this change, the biggest beneficiaries are Gold ETFs and Gold Mutual Funds. Earlier, they used to be taxed as per tax slab. However, now if you hold it for more than 12 months or 24 months respectively, then the taxation is just 12.5%.
I hope this information will help you in understanding the taxation of gold in India post Budget 2024.
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Sir, My income is less than 7 lacs. Earlier Gold MF tax slab & no tax for me. Now 12.5% even after 1 yr sell.
Gain only if somebody above 12.50% slab
Dear Baalu,
Can you elaborate what you are asking for?
Upto 14% increase for corporate NPS is only if we opt for new regime ? and if its only for New regime , is it better to go for New regime ?
What is the benefit of NPS Vatsalya . Is it having any tax benefit ?
Dear Shanti,
Yes, NPS benefit only if you opt for new tax regime. Personally, I feel new tax regime is far better now than old one. Do you think you need to plan for your kid's retirement when he is minor? NPS Vatsalya is a gimmick (as per my view). Parents must concentrate more on kids education than planning for kids retirement.