ITR will have to be filled on all methods of investment in gold, know how much tax will be charged


The Income Tax Department has given a big relief to all the taxpayers by extending the last date for filing ITR for 2020-21 a few days back to December 31, 2021. Earlier, the last date for filing ITR was 31 September 2021. While filing income tax return, you have to give all the information from your earnings to investments. Even if you have invested in gold, you still have to give this information to the Income Tax Department.

According to experts in matters related to ITR, tax has to be paid depending on the mode of investment in gold. Those investing in gold through gold bonds will have to pay a different tax than those who buy physical gold. Today we will give you information about how much tax will have to be paid on all the four ways of investing in gold.

physical gold

Slab-based short term capital gains tax is levied on selling it within 36 months of investing in physical gold. The return from gold is added to the annual earnings of the investor.

Apart from this, if gold is sold after three years of investment, then it will be considered as long term capital gain. In this, the tax will be decided on the basis of the income from the sale. It will be taxed at 20 percent of the total income.

digital gold

Digital gold is considered a new way of investing in gold. The popularity of digital gold is increasing very fast. In this, investments are made through different wallets and bank apps. Investing in Digital Gold can be started from Rs. Long term capital gains in this investment are taxed at 20 percent on returns along with cess and surcharge of 4 percent. Returns are not directly taxed if you hold digital gold for less than 36 months.

gold etf

One can also invest in gold through Gold Exchange Traded Funds (ETFs) and Gold Mutual Funds. In this, gold is in virtual form. It attracts the same tax as physical gold. Investing in gold through gold ETFs attracts 20 per cent tax along with 4 per cent cess for long-term capital gains.

sovereign gold bond

Investors in SGB or Sovereign Gold Bonds get an interest of 2.5 per cent per annum, which is taxed as per the slab. In this, after 8 years of investment, the investor’s return will be completely tax free.

If the holding is sold at any time before reaching maturity after 5 years, 20 per cent Long Term Capital Gains Tax and 4 per cent Cess are levied.

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