New Delhi: With the beginning of the festival season, the demand for gold also increases. Actually, buying gold is considered auspicious in India. Buying gold on the day of Dhanteras is considered very auspicious. If you are also planning to buy gold then this news is for you.

In this article, we will tell you which taxes are levied on buying gold. Along with this, how many types of charges are levied by jewelers. You should buy gold only after knowing all this information.

These taxes and charges are levied

custom duty

Gold is imported to meet the demand in India. In such a situation, custom duty is levied on it. Earlier the custom duty on gold was 12.5 percent, which has now been reduced to 10 percent by the Government of India.

GST

GST has to be paid on purchasing any gold jewellery. The customer pays a tax of 3% on gold jewellery. At the same time, along with the government, AIDC also levies a tax at the rate of 5%. Apart from this, GST has to be paid on the making charge as well.

TDS

If you buy gold worth more than Rs 1 lakh, then you have to pay TDS at the rate of 1 percent.

Note: All these taxes are levied on physical gold. If you invest in digital gold i.e. ETFs and bonds, then taxes and charges are different on it.

Is there any tax on selling gold?

Along with the purchase of physical gold, tax has to be paid on its sale as well. This tax depends on how many years you are selling the gold after. If you are selling gold within three years, then Short Term Capital Gain (STCG) is applicable on it. On the other hand, if you sell gold after a long time, then Long Term Capital Gain (LTCG) which is 20 percent is applicable. Apart from this, GST is also applicable on the sale of gold.

What is the gold price?

Gold prices tend to rise during the festive season. According to the website of India Bullion and Jewelers Association (IBJA), the price of 24 carat gold is Rs 7741 per gram. At the same time, the price of 22 carat gold is Rs 7555 per gram.