Budget 2024: Is Now the Best Time to Invest in Gold?

While the tax percentage has been reduced, it’s crucial to note that the government has removed the indexation benefit on your investments. Before calculating actual profits, make sure to factor in the removal of this benefit.

Gold Prices in India Are Dropping—Is Now the Time to Invest?

Here’s why:

* Custom Duty Slashed: The government has cut custom duty on gold imports from 15% to 6%. Since India imports most of its gold, this will significantly lower the cost of raw gold, leading to cheaper prices for consumers. We’re already seeing a dip, with gold prices falling from ₹76,000 to ₹71,000 per 10 grams!

* LTCG Tax Reduced: The Long-Term Capital Gains (LTCG) tax on gold has been reduced from 20% to 12.5%. This means you can save 7.5% in taxes when selling your gold for profit after the long-term holding period.

* Shorter LTCG Period: The holding period for LTCG has been shortened from 3 years to 2 years. Now, if you sell your gold after 2 years, you’ll only pay the lower LTCG rate of 12.5% instead of the higher Short-Term Capital Gains (STCG) tax.

Future Outlook: With countries worldwide increasing their gold reserves, prices are expected to rise in the future. This might be the perfect time to invest!

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