Capital Gains Tax & GST on sale of Gold, Jewellery, Sovereign Gold Bonds & Gold ETF

• May 29, 2020
• CA Chandan Agarwal's Office

Capital Gains Tax and GST on sale of Gold, Jewellery, Sovereign Gold Bonds and Gold Exchange Traded fund (ETT)

Thinking of selling gold during Novel Coronavirus pandemic to meet day to day expenses? check Capital Gains and GST implications on such sale.

Before I jump into the topic, let me first explain, why investing in gold has some fundamental issues. The main problem with gold is that, unlike other commodities such as oil or wheat, it doesn’t get consumed. Once gold is mined, it stays in the world. On the other hand, if oil is mined, the crude oil gets refined into to gasoline, fuel oil, Aviation gasoline, hydrocarbon gas liquids, lubricants, waxes, petroleum coke etc. and gets consumed. Grains also get consumed in the food we and animals eat. Gold, on the other hand, turnsinto jewellery, used in arts, and put to variety of other uses. Regardless of gold’s final destination, its chemical composition is such that the precious metal cannot be used up and it is permanent in nature.

Read on me: https://taxguru.in/income-tax/capital-gains-tax-gst-sale-goldjewellerysovereign-gold-bonds-gold-etf.html