Tax on Gold Jewellery: Now you will have to pay tax on gold jewellery received at the time of marriage, know the rules

Tax on Gold Jewellery: Have you received gold jewellery as a gift at a wedding? If yes, then be ready to pay tax now. It is common to give gold or gold jewellery as a gift during wedding and festival season. But do you know that giving gold jewellery at a wedding also comes under the purview of tax?

Tax on Gold Jewellery: Have you received gold jewellery as a gift at a wedding? If yes, then be ready to pay tax now. It is common to give gold or gold jewellery as a gift during the wedding and festival season. But do you know that giving gold jewellery at a wedding also comes under the purview of tax. If you get gold jewellery, coins, bullion or digital gold as a gift on a special occasion and their value is more than Rs 50,000, then it comes under the category of income from other sources under the Income Tax Act. However, gifts received from some relatives are tax free. Know what the legal rules related to gold say.

Does the gift of gold come under the purview of tax?

If you get gold jewellery, coins, bullion or digital gold as a gift on a wedding, festival or any special occasion, then be alert. If the value of gold is more than Rs 50,000, then it is included in income from other sources. You may have to pay tax on that.

However, gifts received from relatives are tax free. These people are included in it.

Spouse

Parents, siblings

Grandparents

Mother-in-law, father-in-law etc.

Apart from this, gifts received under a will or inheritance are also tax free.

How is tax levied on selling gold?

If you have bought gold and sell it before three years, then Short Term Capital Gains Tax (STCG) will be levied on it which will be according to your tax slab. If sold after three years, 20% Long Term Capital Gains Tax (LTCG) will be levied, which also includes 4% cess.

Tax rules on digital gold, ETF, mutual funds and SGB

STCG is not levied on digital gold if sold before three years, but 20% LTCG tax has to be paid if kept for more than three years. 20% LTCG tax is also applicable on gold ETF and gold mutual funds if sold after three years. If Sovereign Gold Bonds (SGB) are held for 8 years, then no capital gains tax is levied on them. But the 2.5% annual interest received on it is added to your taxable income.

Know what the tax rules say about gold

In India, gold is not just a jewelery or investment but also a symbol of tradition. But it is very important to understand the tax rules on its sale-purchase or gift-giving, so that you can avoid any tax notice or penalty in the future. If you are buying gold or accepting it as a gift during the wedding and festival season, then definitely keep its tax aspects in mind.

The post Tax on Gold Jewellery: Now you will have to pay tax on gold jewellery received at the time of marriage, know the rules first appeared on informalnewz.

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