Gold Investment: Avoid Tax Traps, Maximize Returns with Smart Choices
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Moneycontrol•16-01-2026, 16:01
Gold Investment: Avoid Tax Traps, Maximize Returns with Smart Choices
- •Gold has seen an 80% return in the last year, attracting many investors.
- •Choosing the wrong investment method can lead to 30-50% of profits being lost to taxes.
- •Sovereign Gold Bonds (SGBs) are tax-free on maturity gains for long-term investors, plus offer 2.5% annual interest.
- •Gold ETFs and Mutual Funds incur capital gains tax (12.5% LTCG after 12/24 months respectively) or slab-based tax if sold earlier.
- •Physical and digital gold are least tax-efficient, with 3% GST on purchase and capital gains tax on sale.
Why It Matters: Selecting the right gold investment option is crucial to maximize returns and minimize tax liabilities.
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