When you sell your old jewelry to buy a new one, you must pay capital gains tax on the sale. It is worth noting that sales are important. goldIt is seen as the sale of an old asset, even if it is for the purpose of purchasing a new ornament.

Minister of Finance in the 2024 Budget Nirmala Sitharaman It changed the rules regarding capital gains. Under the new rules, any non-financial asset – when sold more than two years after purchase – attracts capital gains tax of 12.5 per cent without indexation. When the asset is sold in less than two years, it is considered an asset. short term capital gainand the earnings are added to the total taxable income at the bracket rate.

Are exemptions allowed?

Meanwhile, you can claim exemption from income tax when you use the sale proceeds to purchase a property. “Under section 54FIncome tax exemption is available when the sale proceeds are used to purchase a property. “When gold or other precious metals are sold to purchase new assets, it is treated as a new purchase and tax is levied on capital gains arising from the sale,” says Chirag Chauhan, a Mumbai-based chartered accountant.

Let’s say you sold the gold you bought two years ago and made a capital gain. ₹50,000. Your tax liability in this regard ₹6,250 (12.5 X 50,000/100). You also have to pay a 4 percent deductible ( ₹250) over, so ₹6,500.

These rules came into force with the entry into force of the Finance Law of July 23, 2024. “If you are exchanging old jewelery for new ones, it is considered as sale of old jewelery and comes under income tax. 12.5 per cent tax. If the gold is sold after July 23, 2024, the tax will be long,” said Pratibha Goyal, Delhi-based chartered accountant and Partner, PD Gupta & Company. “In case of term capital gains, it can be applied without indexation,” he says.

digital gold

When you purchase new jewellery, you are liable to pay 3 per cent GST on it, regardless of whether the existing jewelery is sold or not. This is believed to be one of the reasons for the popularity of digital gold. “We are seeing strong interest in digital gold across the country. Delhi-NCR, Hyderabad and Bangalore are the top three cities in this space. digital gold investmentsIt accounts for 22 per cent of total investments,” said Bipin Preet Singh, Co-Founder and CEO of MobiKwik.

Sridharan S, founder of Wealth Ladder Direct, says: “You save money when you buy digital gold 3 percent GST taken from this yellow metal. “You also save on construction costs, which can reach up to 10-15 percent of the total bill.”