HOW SHOULD YOU INVEST IN GOLD? CHECK OUT THE MOST TAX EFECTIVE WAYS.
Gold has traditionally shielded Indians from the rupee depreciation and has offered protection againts inflation. This explains why buying gold has never gone out of fashion here. that said, if investment is the sole purpse of buying gold, it is prudent to analyse the imvestment options.
Taking the Mfroute to invest in gold in so longer tax-effective! according to finanace act 2023, gains made on any investment in MF having equity exposure of less than 35% will be deemed as short-term capital gains. This has taken some sheen off gold EFTs.
The new tax regime has made physical gold more attractive than EFTs as you can indexation benefits on LTCG's made on the former. However, additional cost build up for physical gold goes up to 18% one must also consider cost of keeping physical gold safe.
Given fresh development on the tax front, SGB's have become extermely attractive. Gains are tax- free at maturity: exit option is available after 5th year; SGB's pay you 2.5% interest semianually, and they can be placed as collateral to avail loans.
To facilitate spot trading and a market driven price discovery mechanism, sebi has given green light to establish a gold exchange in september 2021. Following this, BSE rolled out EGR's in october 2022.
Stay tuned to get more informative news here.
Click here to see the next web stories.