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Part IV: Gold Tax Implications – Best Way to Buy Gold After the 2024 Budget

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Investors have multiple options to invest in gold. These options include gold jewelry, gold ETFs, and Sovereign Gold Bonds (SGBs). Each has its pros and cons, including factors like liquidity, safety, and returns. It is essential to understand the tax implications of each type of investment to make informed decisions.

Check out other articles in this series below:

Part I: Gold – More than a Pretty Metal

Part II: The Rise & Fall of the Gold Standard

Part III: Gold – Stability in Uncertain Times

Gold as an Investment Tool

The yellow metal’s allure as an investment has persisted through time, particularly as a hedge against inflation and economic uncertainty. Investors often turn to gold during turbulent times, viewing it as a safe haven. Here are some of the ways to invest in this metal today:

Here’s a breakdown of the most popular options & their pros & cons:

The 2024 budget has proposed a new TDS of 20% on physical gold purchases above Rs. 20 lakhs, which is higher than the 10% previously. This move is to curb black money circulation.

Tax Implications After the 2024 Budget:

The 2024 budget has changed the tax treatment of gold investments. Here’s a summary:

_{To learn about the taxation on equity-based smallcases, read here.}

Conclusion

Understanding the tax implications of different gold investments is crucial for making informed decisions. Investors should consider their financial goals, risk tolerance, and tax situation when choosing the right gold investment option. Diversifying across various forms of gold investments can also mitigate risks and maximize returns.

Final Thoughts on the Series

This concludes our four-part series on gold. We’ve journeyed through the rich history, examined its role in the global economy, explored its stability as an investment, and delved into the nuances of various gold investment options and their tax implications.

We hope this series has provided you with valuable insights and a deeper appreciation for gold’s role in both historical and contemporary contexts. Stay informed, stay strategic, and may your investment choices shine as brightly as gold itself.

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Windmill Capital Team: Windmill Capital Private Limited is a SEBI registered research analyst (Regn. No. INH200007645) based in Bengaluru at No 51 Le Parc Richmonde, Richmond Road, Shanthala Nagar, Bangalore, Karnataka – 560025 creating Thematic & Quantamental curated stock/ETF portfolios. Data analysis is the heart and soul behind our portfolio construction & with 50+ offerings, we have something for everyone. CIN of the company is U74999KA2020PTC132398. For more information and disclosures, visit our disclosures page here.

Naveen K R

Senior Director, Windmill Capital | The content in this article is purely the author’s personal opinion and is for informational and educational purposes only. It should not be construed as professional financial advice and nor to be construed as an offer to buy /sell or the solicitation of an offer to buy / sell any security or financial products. The views and opinions stated in the content belong to the author. Windmill Capital Private Limited does not uphold nor promote any of the views / opinions. | Windmill Capital Private Limited is a SEBI registered research analyst (Regn. No. INH200007645)

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