From April 1, there are going to be some big changes regarding gold and silver investment and the facilities available on these. These rules will not only affect the value of your investments, but will also impact your tax planning and ability to take a loan.
Now the price will be decided by ‘desi’ price, not foreign price Till now the prices of Gold and Silver ETFs (Exchange Traded Funds) were mainly decided on the basis of international standard (LBMA). But according to the new rules of SEBI, from April 1, their value will be based on the ‘domestic spot price’ of Indian exchanges. Its advantage will be that investors will know the real value of the Indian market and the impact of international price and currency fluctuations will be reduced.
Along with this, those who consider it safe to invest money in digital gold or Sovereign Gold Bond (SGB) instead of physical gold, then this news is very important for you. The government has now made preparations to include the benefits of digital investment in the tax net.
What is the new mathematics of tax? Till now many investors considered sovereign gold bonds to be quite economical on the tax front, but under the new rules, now capital gains tax will have to be paid on SGBs also. However, it is a matter of relief that this rule is not the same for everyone. Investors who are ‘holding’ the bond since its issue will continue to get exemption from this tax. This burden will mainly fall on those who have purchased bonds from the secondary market. In this, tax will be charged on the basis of short term and long term capital gains, just as it is currently charged on gold and silver ETFs.
Market condition: What are the prices of gold and silver in your city? Due to closure of the market today, there has been no new change in the prices, hence the business is currently based on the old rates of yesterday. The prices of 24 carat gold have crossed the level of Rs 1.45 lakh per 10 grams in major cities of the country. In Bhopal and Indore, 24 carat gold was seen at the most expensive level of ₹ 1,45,410, while silver also remained shining at around ₹ 2.29 lakh per kg.
Price analysis by carat On the basis of purity, in cities like Lucknow and Kanpur, the price of 22 carat gold is around ₹ 1.33 lakh, while 18 carat gold is available at around ₹ 1.09 lakh. Prices in Raipur and Patna have been recorded slightly lower than other metros. The new tax rules coming into effect from tomorrow could bring a big change in the strategy of investors, especially for those who turn to digital gold for short-term profits.