Budget 2024 changes how your gold investment is taxed

By Nandini Das CNBC-TV18.com Published July 24, 2024

[{"selector":"#anim-19050654-9e4c-42b1-9bb4-0b841b79d139 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-34.179687404002955%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] FM Sitharaman has introduced changes to how capital gains on gold are taxed.

Benefit of indexation removed

[{"selector":"#anim-ac4479b7-1ab4-4e83-96b6-adc4f572ea72 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(28.90624987200394%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Gold sold after 2 years will qualify for long-term capital gains treatment and will be taxed at lower rate of 12.5% without benefiting from indexation.

No adjustment for inflation

[{"selector":"#anim-06e3f535-322c-4034-950f-436701243f78 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(8.621381674420054%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Taxpayers can calculate their gains based on the original purchase price without adjusting inflation.

Applicable income tax slab rate

[{"selector":"#anim-a94a780c-0043-4030-93d9-253bba1d5216 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-17.042557375565906%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Short-term capital gains will now be taxed at the applicable income tax slab rate which earlier used to apply to gold sold within 24 months

Implication of the changes

[{"selector":"#anim-1754c0cc-fd8a-4aa7-87c4-a59ad0bb5c7b [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-47.866724945692056%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] The amendments will reduce the holding period and tax rate for long-term capital gains while removing the indexation calculation.

[{"selector":"#anim-12e520d4-e057-4229-aa38-9a393646a2be","keyframes":{"transform":["scale(1)","scale(1.5)","scale(0.95)","scale(1)"],"offset":[0,0.33,0.66,1]},"delay":0,"duration":1450,"easing":"ease-in-out","fill":"both","iterations":1}] [{"selector":"#anim-9a9b9d7b-aec6-4853-ac8b-1ba6b3c2d7fb [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Thanks For Reading! Budget 2024: Proposed changes in TDS structure Read More