Tax on gold jewelery: Have you found gold jewelery gifts at the wedding? If yes, then be ready to pay tax now. It is common to give gold or gold jewelery gifts during the wedding and festivals. But do you know that giving gold jewelery in marriage also comes under the scope of tax. If you find gold jewelry, coins, bullion or digital gold gifts on a particular occasion and they cost more than Rs 50,000, then it comes in the category of income from other sources under the Income Tax Act. However, gifts from some relatives are tax free. Know what the legal rules related to gold say.
Does gold gift fall under tax?
If you find gold jewelery, coins, bullion or digital gold gifts on a wedding, festival or any particular occasion, then be alert. If the price of gold is more than Rs 50,000, then it is included in income from other sources from other sources. You may have to pay tax on it.
However, gifts from relatives are tax free. These people are involved in this.
Spouse
Parents, siblings
Grandparen
In-laws
In addition, gifts found under will or succession are also tax free.
How is tax on selling gold?
If you have bought gold and sell it before three years, it will be levied short -term capital gains tax (STCG) which will be according to your tax slab. After three years, selling 20% long -term capital gains tax (LTCG), which also adds 4% cess.
Tax rules on Digital Gold, ETF, Mutual Fund and SGB
Selling before three years on digital gold does not take STCG, but keeping 20% LTCG tax if kept more than three years. Gold ETF and Gold Mutual Fund also apply 20% LTCG tax on selling after three years. If the Sovereign Gold Bond (SGB) is held for 8 years, then there is no capital gains tax on them. But 2.5% annual interest on it is added to your taxable income.
Know what tax rules say about gold
Gold is not just a jewelery or investment in India but also a symbol of tradition. But it is very important to understand the rules of tax on taking its cell-purchase or gift, so that you can avoid any tax notice or penalty in future. If you are buying gold or taking gifts during the wedding and festival season, then keep its tax aspects in mind.
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