Along with buying gold on the occasion of Akshaya Tritiya, some people would also like to earn profit by selling it.
Such investors should keep in mind that like shares and bonds, you also have to pay tax on the profits made from the sale of gold. However, by investing in certain niches, you can completely avoid this tax liability as well.
Today, on the occasion of Akshaya Tritiya, there is a crowd in the markets to buy gold ornaments. On this occasion some people will also be preparing to sell their old jewellery. It is important for such people to know that you will also have to pay tax on the profits made from the sale of gold.
Actually, like shares and bonds, capital gains tax is charged on the sale of gold according to the holding period. If you are also selling gold, then you can come under such tax liability, but under Section 54F of Income Tax, you get full opportunity to save tax on such capital gains. You can use this option to save tax on the profit earned from the sale of gold.
Exemption will be available on all types of capital gains
Income tax experts say that under section 54F, not only on the sale of gold, but also on capital gains tax arising from the sale of shares, bonds, mutual funds or properties, is fully exempted. The Income Tax Department has made special provisions for this. However, this benefit is given only to the individual taxpayer or Hindu Undivided Family (HUF).
You will get exemption from investment in these options
- If you use the profit from the sale of gold to buy or build a house again, then you will get tax exemption on this entire amount.
- Investment in this property will have to be done within one year of the sale of gold, only then will the exemption be available.
- Not only this, if you invest in an under-construction property within three years of the sale of gold, you will also get tax exemption.
If you can’t invest right away then…
Many times it also happens that it is not possible to invest that amount in a residential property immediately after the sale of gold. In such a situation, you should open a capital gains account in any government bank and deposit this amount in it.
After this, you will be able to use this amount to buy a property or build a house within the stipulated time frame and you will not have any tax liability.
