Buying gold on Akshaya Tritiya? Income tax liability you should not forget!

financialexpress.com:

Akshaya Tritiya is considered auspicious for buying valuable assets, including gold and silver, by Indians. Every year, the demand for gold rises ahead of Akshaya Tritiya or Akha Teej, which is celebrated across the country on the third day or ‘tritiya tithi’ of Shukla Paksha. This year, Akshaya Tritiya will be celebrated on May 10, 2024.

Akshaya Tritiya is considered a lucky day for purchasing gold and diamond jewellery. People buy gold jewellery on this day because it has a cultural significance as well the precious metal as store value. The other factor is that in a country like India, buying gold is seen as an investment more than anything else and every year people buy the yellow metal, however small it may be, as per their income and buying capacity.

Experts suggest people weigh the pros and cons both before they make any decision to buy gold. Though gold is considered a good investment against inflation and provides immediate liquidity, it does not provide consistent returns like stock or bonds and also has costs associated with storage, according to them.

Also Read: Gold Price Prediction: By next Akshaya Tritiya, gold price to breach Rs 1 lakh mark?

The income tax treatment on gold buying varies according to the form of investment. At present, there are various options of gold investment available for buyers. The popular ones are physical gold, digital gold, gold bonds and gold ETFs.

Gold jewellery, gold biscuits, ornaments and coins are physical gold. Physical gold has always been a popular investment option for gold buyers. When you buy physical gold, you are charged 3% GST on the total value. At the time of selling, you are again liable to pay tax. On selling physical gold after holding it for more than 3